income-producing real estate accessible. To qualify as a REIT, the trust must comply with IRS rules. These rules include: 1) distributing annually as dividends at least 90% of its taxable income, 2) investing at least 75% of its total assets in real estate and 3) deriving at least 75% of gross income from real estate.
The 90% distribution requirement along with no corporate income taxes are the reasons REITs yields are often above average. However, it is important to note that because REITs pay no income tax, their dividends are not eligible for the special treatment as a "qualified dividends", which are normally taxed at 15%.
When comparing REIT yields to investments with qualified dividends, you must always look at them on an after-tax basis. REITs trade on major stock exchanges and have become immensely popular since their introduction.
This week week, I screened my dividend growth stocks database for REITs with a yield at or above 5% and have increased their dividends for at least 10 consecutive years. The results are presented below:
W.P. Carey & Co. (WPC)
Yield: 5.1% | Years of Dividend Growth: 12
W. P. Carey & Co. LLC is an investment firm that provides long-term sale-leaseback and build-to-suit transactions for companies worldwide and manages a global investment portfolio. WPC is technically not a REIT, but a Limited Partnership focusing on Real Estate.
Realty Income Corp. (O)
Yield: 5.2% | Years of Dividend Growth: 17
Realty Income Corporation is a real estate investment trust that owns a diversified portfolio of 2,339 retail properties as of Dec. 31, 2009.
HCP, Inc. (HCP)
Yield: 5.2% | Years of Dividend Growth: 11
Health Care Property Investors, Inc. is an equity-oriented real estate investment trust, based in California, that has direct or joint venture investments in health care-related facilities across the U.S.
Corporate Office Properties (OFC)
Yield: 5.3% | Years of Dividend Growth: 14
Corporate Office Properties is a real estate investment trust that owns, manages, leases, acquires and develops suburban office properties located in Mid-Atlantic region of the U.S. and other select markets.
Washington Real Estate Investment Trust (WRE)
Yield: 5.3% | Years of Dividend Growth: 14
Washington Real Estate Investment Trust is a real estate investment trust that owns and develops income-producing real properties in the greater Washington metro region.
Urstadt Biddle Properties (UBA)
Yield: 5.4% | Years of Dividend Growth: 17
Urstadt Biddle Properties is a real estate investment trust that acquires, owns and manages commercial real estate properties primarily in the northeastern United States.
National Retail Properties, Inc. (NNN)
Yield: 6.2% | Years of Dividend Growth: 20
National Retail Properties, Inc. is an equity real estate investment trust that invests in high-quality, freestanding retail properties subject to long-term net leases with major retail tenants.
Senior Housing Properties Trust (SNH)
Yield: 6.3% | Years of Dividend Growth: 10
Senior Housing Properties Trust, a real estate investment trust (REIT), primarily invests in senior housing properties.
Getty Realty Corp. (GTY)
Yield: 7.6% | Years of Dividend Growth: 15
Getty Realty Corp. is a real estate investment trust that specializes in the ownership and leasing of retail motor fuel and convenience store properties and petroleum distribution terminals in the U.S.
As with past screens, the data presented above is in its raw form. Some of the the companies would be disqualified for poor dividend fundamentals. However some of the others may be worth additional due diligence.
My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 200+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.
Full Disclosure: Long GTY, NNN, HCP, O. No position in the aforementioned securities. See a list of all my income holdings here.
- Increasing Dividend Yield Part IV: Bonds
- Increasing Dividend Yield Part III: Preferred Stock
- Increasing Dividend Yield Part II: REITs
- 11 Dividend Stocks Providing Positive Feedback
- 38 Dividend Securities For A Well-Rounded Asset Allocation
Tags: [GTY] [SNH] [NNN] [UBA] [WRE] [OFC] [HCP] [O] [WPC]
Popular Posts - Last 7 days
When you hear the words "tech stocks", many investors think back to the tech bubble in the late 90s. A tech company's goal ba...
Linked here is a detailed quantitative analysis of Cisco Systems, Inc. (CSCO). Below are some highlights from the above linked analysis: ...
Each Sunday I highlight any notable articles that I came across over the past week. Though I may not always agree with each of the articles ...
Have you ever noticed those that most vehemently attack a buy-and-hold strategy really don’t understand how the strategy works? They confus...
Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of...
Linked here is a detailed quantitative analysis of Chevron Corporation (CVX). Below are some highlights from the above linked analysis: C...
Too often we take a short-term approach, to our long-term detriment. There is a reason we don't see infomercials selling dividend growth...
Linked here is a detailed quantitative analysis of General Mills, Inc. (GIS). Below are some highlights from the above linked analysis: C...
D4L-Premium Services is designed to provide the busy dividend growth investor with a wealth of relevant information. Each week the D4L-Premi...
Linked here is a detailed quantitative analysis of Abbott Laboratories (ABT). Below are some highlights from the above linked analysis: C...