One of the main reasons to invest in real estate investment trusts (REITs) is the type of dividends many pay. While Treasuries are just beginning to catch up with inflation, some REITs offer better returns if investors are willing to accept the risks associated with owning them.
Here are eight high-dividend REITs priced at less than $10 per share:
Related: Like dividends? Then you’ll love these high yield investments
ARMOR Residential REIT Inc. (NYSE: ARR ) pays a 17% dividend and is priced at just $7.22 per share. It is a real estate investment trust (REIT) based in Vero Beach, Florida. According to its website, it “invests primarily in mortgage-backed home securities issued or guaranteed by an entity sponsored by the United States government, such as the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) or guaranteed by the Government National Mortgage Administration (Ginnie Mae)’. Analysts at B. Riley Securities in July 2022 reiterated a neutral rating on ARMOR, but lowered their price target from $9.50 to $8.00.
Brandywine Realty Trust (NYSE: BDN ) pays a dividend of 9.13% and shares trade for $8.43. The company owns over 24 million square feet with a total market capitalization of approximately $5 billion. Analysts at Credit Suisse initiated coverage of the June 2022 REIT with a neutral rating. Brandywine recently beat second quarter FFO estimates by reporting $0.34 per share compared to $0.32 per share a year ago.
Broadmark Realty Capital Inc. (NYSE: BRMK ) pays a dividend of 12.23%. The price of a share at the time of writing is $6.93. This REIT is based in Seattle and works with commercial and residential real estate projects across the country. Analysts at Piper Sandler initiated coverage of Broadmark in June 2022 with a neutral rating.
Annaly Capital Management Inc. (NYSE: NLY ) pays a 13.56% dividend with shares priced at $6.60. Headquartered in New York, it is one of the major mortgage REITs. Annaly describes her work as follows: “Our diversified investment strategies include agency-backed securities, mortgage servicing rights and residential real estate.” Piper Sandler maintains Annaly neutral, while Keefe, Bruyette and Woods upgraded it in June from market perform to outperform. The REIT’s price-to-earnings ratio of just 2.73 is unusually low.
New York Mortgage Trust Inc. (NASDAQ: NYMT ) pays a dividend of 13.99%. Shares are currently trading at $2.89. This REIT was founded in New York, New York in 2003 and has an investment portfolio value of $3.6 billion, according to its website. Analysts are not thrilled with the REIT: Keefe, Bruyette and Woods in July 2022 downgraded their opinion on it from outperform to market perform. Jones Trading maintained its Buy rating this month with a $4 price target.
Orchid Island Capital Inc. (NYSE: ORC ) currently offers investors a dividend yield of 13.91%. The price per share as of now is $2.85. The REIT says it is “a specialty financial company that invests in residential mortgage-backed securities on a leveraged basis. The income generated for distribution to our stockholders is primarily based on the difference between the return on our mortgage assets and the cost of our loans.” In January 2022, JMP Securities initiated coverage of Orchid Island Capital with a buy rating, but Ladenburg Thalmann recently downgraded it to neutral.
Redwood Trust Inc. (NYSE: RWT ) pays a dividend of 11.54% and is priced at $8.15 per share. According to the company’s website, Redwood invests “in mortgages for single-family homes and rental properties…and also acquires, sells and securitizes mortgages.” Last month, Raymond James maintained its strong buy rating on the REIT with a price target of $13.50 per share.
Two Harbors Investment Corp. (NYSE: TWO ) pays a 13.93% dividend and goes for $4.95 per share. This St. Louis-based mortgage REIT “focuses on the investment, financing and management of Agency RMBS.” RBC Capital maintained its Outperform rating this month with a price target of $5.50 per share.
Making an investment in a company based on dividend yield requires careful consideration of all factors involved, especially macroeconomic factors related to Fed policy. Searching for high yield can be a risky venture and you should think seriously before investing money.
Key offering points of today’s private market
Homes arrived, the company that allows investors to buy shares of single-family rental homes, is set to launch 14 new rental properties on its platform with a minimum investment of $100. Average dividend yields on past offerings range from 3% to 7.6% per annum.
The private debt investment platform Percent launched a new corporate debt offering for Tiger, an international VC-backed software company, with an APY of 15-17%. The platform’s recent 1H update shows an average historical return of 12.38%.
Find more current offers and news at Benzinga Alternative Investments
Not investment advice. For educational purposes only.
Image by jittawit21 on Shutterstock
See more from Benzinga
Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.