3 REITs with huge dividend yields

The old saying “different strokes for different folks” certainly applies in the stock market.

Some investors prefer growth stocks like Tesla Inc. which are volatile but have produced years of exceptional appreciation. Other people prefer less volatile stocks like Johnson & Johnson whose growth may be slower but also adds dividends of 2% to 3% per year to the total return.

In addition, there are income investors, who are strictly looking for stocks that will deliver high-yielding dividends year after year. With no plans to sell, they don’t really care about the stock price movement as long as the big dividends continue every quarter to pay their bills.

For those income-loving folks, here are three real estate investment trusts (REITs) with huge dividend yields that could pay the bills for a long time:

About: This little-known REIT has produced double-digit annual returns over the past five years

Office Properties Income Trust (NYSE: OPI) is a Massachusetts-based real estate company that owns, leases and manages office space. While the office REIT sector has had its share of problems since 2020, many of Office Property Income’s tenants are stable and its portfolio includes government offices. Office Properties Income opened today at $17.56 and with a current quarterly dividend of 55 cents, which yields 12.5% ​​annually.

Office Properties Income was a $48 stock four years ago, but the past three years have seen declining revenue and earnings per share (EPS) hurt its price performance. If in the future more workers return to office environments, income from Office Properties could one day return to previous levels. But even if the stock only trades sideways, income investors could get a steady dividend yield every quarter.

Global Net Lease Inc. (NYSE: GNL) is a diversified, international commercial property REIT with 311 properties in 11 countries. Headquartered in New York, Global Net’s 140 tenants are spread across 50 different industries. The company disappointed the Street with 43 cents per share in funds from operations (FFO) and revenue of $95 million last quarter, both down from a year earlier. However, the current leased rate is 99.9% and the average lease term is 8.3 years.

Global Net Lease has done quite well since the COVID-19 crash in 2020, coming back from a low of $6.65 to a high of $17.27 by June 2021. With an opening price on September 7 of $13.27 and an annual dividend of $1.60, the stock has a high current dividend yield of 12%. Despite the recent negative quarter, this REIT’s diversification gives it a long-term advantage for income investors looking for very high yield.

Brandywine Realty Trust (NYSE: BDN) is a Philadelphia-based REIT that owns, develops, leases and manages 175 commercial properties from Philadelphia to Austin, Texas.

Like many REITs this year, rising interest rates and the threat of recession have reduced the share price by a significant margin. However, second-quarter FFO of 34 cents per share was 2 cents higher than a year ago, while revenue of $124.04 million also beat Q2 2021.

These results provide optimism that Brandywine could show improvement in future quarters. Brandywine has a 52-week high of $14.88, but the current price of $8.03 now yields 9.46%. The 19-cent quarterly dividend has been a steady but slow producer over the past five years. However, income investors have a lot to like about this high-yielding stock.

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