In this article, we will look at 5 dividend-paying REIT stocks to buy now. If you want to explore similar stocks, you can read 10 Dividend Paying REIT Stocks To Buy Now.
5. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Holders: 21
Dividend Yield as of July 22: 3.71%
Agree Realty Corporation (NYSE:ADC) acquires and develops properties that are net leased to industry-leading retail tenants. On June 22, Credit Suisse analyst Tayo Okusanya initiated coverage of Agree Realty Corporation (NYSE:ADC) with a buy-side Outperform rating and a $78 price target and named the stock one of his top picks. On June 30, Jefferies analyst Linda Tsai raised her price target on Agree Realty Corporation (NYSE:ADC) to $82 from $80 and reiterated a Buy rating on the shares.
On July 12, Agree Realty Corporation (NYSE:ADC) declared a monthly cash dividend of $0.234 per share. The dividend is payable on August 12, to investors of record on July 29. As of July 22, Agree Realty Corporation (NYSE:ADC) has a forward dividend yield of 3.68% and trailing twelve-month free cash flows of $261.98 million.
At the close of Q1 2022, 21 hedge funds held stakes in Agree Realty Corporation (NYSE:ADC). The collective stakes of these hedge funds amounted to $141.55 million. This is compared to 26 positions in the previous quarter with stakes of $200.33 million.
As of March 31, Millennium Management is the top shareholder in Agree Realty Corporation (NYSE:ADC) and has stakes worth $50.50 million in the company.
4. Digital Realty Trust, Inc. (NYSE:DLR)
Number of Hedge Fund Holders: 31
Dividend Yield as of July 22: 3.90%
Digital Realty Trust, Inc. (NYSE:DLR) invests in carrier-neutral data centers and provides colocation and peering services. As of July 2022, Digital Realty operates 167 data centers worldwide, of which 155 are in North America. As of July 22, Digital Realty Trust, Inc. (NYSE:DLR) is offering a forward yield of 3.90% and has trailing twelve-month free cash flows of $1.65 billion.
Wall Street is bullish on Digital Realty Trust, Inc. (NYSE:DLR). On June 30, Jefferies analyst Jonathan Petersen upgraded Digital Realty Trust, Inc. (NYSE:DLR) to Buy from Hold and raised his price target on the stock to $160 from $151. On July 1, Wells Fargo analyst Eric Luebchow reiterated a buy-side Overweight rating on Digital Realty Trust, Inc. (NYSE:DLR).
As of March 31, Jasper Ridge Partners is the largest stakeholder in Digital Realty Trust, Inc. (NYSE:DLR) and has stakes worth $92.51 million in the company. The investment covers 4.39% of the fund’s 13F portfolio.
At the close of the first quarter of 2022, 31 hedge funds held stakes in Digital Realty Trust, Inc. (NYSE:DLR). The total value of these stakes came in at $556.70 million, up from $409.09 million a quarter ago with 26 positions. The hedge fund sentiment for the stock is positive.
3. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 22
Dividend Yield as of July 22: 4.21%
Realty Income Corporation (NYSE:O) invests in freestanding, single-tenant commercial properties in the United States, Spain, and the United Kingdom. As of July 22, Realty Income Corporation (NYSE:O) is offering a forward dividend yield of 4.21% and has trailing twelve-month free cash flows of $1.56 billion.
On July 12, Realty Income Corporation (NYSE:O) declared a monthly cash dividend of $0.2475 per share. The dividend is payable on August 15 to shareholders of record at the close of business on August 1.
Wall Street is bullish on Realty Income Corporation (NYSE:O). On June 22, Credit Suisse analyst Tayo Okusanya initiated coverage of Realty Income Corporation (NYSE:O) with an Outperform rating and a $75 price target. On June 30, Jefferies analyst Jonathan Petersen lowered his price target on Realty Income Corporation (NYSE:O) to $78 from $81 and reiterated a Buy rating on the shares.
Insider Monkey found 22 hedge funds bullish on Realty Income Corporation (NYSE:O) at the end of Q1 2022. The total stakes of these hedge funds amounted to $284.88 million. This is compared to 30 positions in the previous quarter with stakes of $398.85 million.
As of March 31, Glendon Capital Management owns over 1.8 million shares of Realy Income Corporation (NYSE:O) and is the largest shareholder in the company. The fund’s stakes in the REIT are valued at $128.68 million.
2. Boston Properties, Inc. (NYSE:BXP)
Number of Hedge Fund Holders: 20
Dividend Yield as of July 22: 4.45%
Boston Properties (NYSE:BXP) is the largest publicly-held developer and owner of Class A office properties in the United States. The company is concentrated in five markets: Boston, Los Angeles, New York, Washington DC, and San Francisco. On June 14, Boston Properties, Inc. (NYSE:BXP) declared a quarterly cash dividend of $0.98 per share. The dividend is payable on July 29 to investors of record at the close of business on June 30. As of July 22, the stock has a forward dividend yield of 4.45% and the company has free cash flows of $1.20 billion.
On July 6, Mizuho analyst Vikram Malhotra cut his price target on Boston Properties, Inc. (NYSE:BXP) to $105 from $135 but reiterated a Buy rating on the shares. The analyst noted that the risk/reward for office REITs is now moderately positive from completely negative in Q1 2022. On July 20, Deutsche Bank analyst Derek Johnston lowered his price target on Boston Properties, Inc. (NYSE:BXP) to $104 from $139 and reiterated a Buy rating on the shares.
At the end of the first quarter of 2022, 20 hedge funds were eager on Boston Properties, Inc. (NYSE:BXP) and held stakes worth $1.58 billion in the REIT. This is compared to 22 positions in the previous quarter with stakes of $1.50 billion.
In the second quarter of 2022, Arjuna Capital raised its stakes in Boston Properties, Inc. (NYSE:BXP) by 42%, bringing them to $1.66 million. Arjuna Capital is the largest shareholder in the REIT.
Diamond Hill Capital, an investment management firm, recently published its “Diamond Hill Long-Short Fund” first-quarter 2022 investor letter in which it mentioned Boston Properties, Inc. (NYSE:BXP). Here is what the firm said:
“Commercial real estate investment trust (REIT) Boston Properties (NYSE:BXP) has a solid balance sheet and good assets. However, as the largest public office REIT, it operates in a challenging space due to high capital expenditure needs, the ease of adding new supply and tenant leverage. BXP is also concentrated in large coastal markets that have high taxes and burdensome regulations, and subsequently have seen population outflows. We believe the combination of a tough business and a marginally worse environment given the rising acceptance of at-home work will be challenging over the long term for BXP.”
1. Healthpeak Properties, Inc. (NYSE:PEAK)
Number of Hedge Fund Holders: 24
Dividend Yield as of July 22: 4.50%
Healthpeak Properties, Inc. (NYSE:PEAK) is an American real estate investment trust that invests in real estate related to the healthcare industry including senior housing, life science, and medical offices. As of July 22, the stock is offering a forward dividend yield of 4.50% and has free cash flows of $866.70 million.
Wall Street is bullish on Healthpeak Properties, Inc. (NYSE:PEAK). On July 8, Citi analyst Nicholas Joseph upgraded Healthpeak Properties, Inc. (NYSE:PEAK) to Buy from Neutral after he trimmed his price target on the stock to $31 from $33. The analyst likes the company’s exposure to life science, on-campus medical office, and continuing care retirement communities which he believes gives Healthpeak Properties, Inc. (NYSE:PEAK) a competitive advantage over peers. On July 15, Morgan Stanley analyst Richard Hill cut his price target on Healthpeak Properties, Inc. (NYSE:PEAK) to $26 from $32.50 and reiterated an Equal Weight rating on the shares.
At the close of Q1 2022, 24 hedge funds were long Healthpeak Properties, Inc. (NYSE:PEAK) with stakes of $241.33 million. This is compared to 26 positions a quarter ago with stakes worth $248.64 million.
You can also take a look at Top 10 REIT Stocks Under $10 and 10 Best REIT Stocks to Buy Right Now
