Real Estate Investment Trust (or REITs for short) is a way to invest in real estate through the stock market. It allows investors to diversify into the real estate market without necessarily needing to take the risk of owning a single property for thousands of dollars. There are multiple other advantages that REITs offer but today we will be looking at the four best dividend REITs to invest in long-term. These rates will be different in terms of what they invest in real estate, for example, locations, markets, sectors, Etc.
1. QTS Realty Trust: QTS
QTS is an operator developer and owner of data centers. Data centers have long-term longevity and will probably still remain relevant throughout the future. It is also believed that data centers will bro in the near future as computing consumerism Rose overtime with developing countries moving into more complex societies. This leaves your dividend yields to grow over time. Since this is a smaller REIT (about four billion dollars) they still have a lot of room to grow inside of the real estate market.
The trust currently has a price to funds from operation of about 22x this is tied for the highest on our list today but yet again technology stocks have a bridge price to earnings of about 88x so this one in comparison isn’t way too bad. For the past few years in QTS has had an amazing difference from history. It has grown consistently for the past 7 years and is expected to continue to grow as time goes on. This trust currently has a dividend yield of about 3% which is not bad in the world of REITs.
2. Public Storage: PSA
Public Storage is a Reit self-storage facility. They have about 2,500 facilities across the US and operate with about a million customers. It is the world’s leading owner and operator of self-storage facilities and is expected to continue to grow as time goes on. Publix stores currently have a price to funds from operations of about 22x which is tied with QTS. Their dividend history currently shows very consistent growth over a large period of time and is forecasted by analysts to continue to grow over the future decade. It currently has a dividend yield of about 3.5% which again is not fat at all in the world of REITs.
3. Gladstone land Corp: LAND
Gladstone is in retrospect a much smaller REIT. Their market cap is just shy of $300 million, but smaller REITs aren’t necessarily bad. Smaller REITs always have more room to grow than their larger counterparts and are therefore good for long-term holds. Gladstone also has a very amazing dividend history, because they have grown their dividends over the past 7 years. Gladstone currently has a dividend yield of about 3.8% and price to funds from operations of about 21x. Which is an improvement from the REITs above in terms of both P/FFO and Dividend Yield.
4. CyrusOne Inc: CONE
Just like QTS Cyrus focuses on the production and management of Data centers. They are in fact today one of the largest data center providers in the United States. They don’t only operate in the US, they are technically a global data center provider which gives them an edge over their more local competition. This REIT has also been consistently growing its dividend over the past several years and today has a dividend yield of about 2.8%. Although this does seem low compared to others on this list, they are heavily reinvesting their earnings into their stocks in order to make more in the long term. This is why their P/FFO of 18x is considerably more attractive than the others on this list.
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