2 High-Yield REITs Worth Buying Now

Look to REITs for a combination of dividends and share price appreciation.

April 07, 2024

Your free edition of today’s BLI Newsletter is presented by:

Sponsored by

Real Estate Investment Trusts, or REITs, can be an attractive investment option for anyone looking for a combination of dividends and potential share price appreciation. These enties hold portfolios of commercial real estate or real estate loans in a variety of industries, and are required law to pay out at least 90% of their taxable income to shareholders as dividends every year.

But with hundreds of REITs available in the public markets, it’s easier said than done to narrow down those that are actually worth owning.

To that end, here are two public, high-yield REITs serving disparate industries that we think are worth buying now.

American Tower (NYSE: AMT)

American Tower is one of the world’s largest REITs, boasting a mammoth global portfolio of over 224,000 wireless and broadcast communications sites. The company has a presence in 25 countries, with around 80% of its portfolio located outside the U.S. and Canada.

But what about the threat of satellite-based mobile and broadband communications networks from the likes of SpaceX and AST SpaceMobile? Incidentally, American Tower has not only already made strategic investments in AST SpaceMobile to support its end goal of building the first commercially available space-based network accessible by everyday smartphones, but has also partnered with the company to foster a more comprehensive global network that will the reach of AST’s space-based connectivity with the breadth and speed of American Tower’s assets.

American Tower is also working to future-proof itself with early tests to expand by supporting technologies like open radio access networks (RAN) and edge computing.

In the meantime, investors can sit back and collect American Tower’s healthy dividend yielding 3.4% at today’s prices.

To learn more about American Tower, visit its investor relations page and read its latest (fourth-quarter 2023) operational update.

Retail Opportunity Investment Corp (NYSE: ROIC)

Retail Opportunity Investments (NYSE: ROIC) is a retail-oriented REIT that focuses on buying and revitalizing grocery-anchored shopping centers — an effective strategy to keep occupancy rates high and foot traffic flowing from regular grocery customers to non-grocery tenants.

Retail Opportunity Investments is a relatively small REIT with its $1.56 billion market cap as of this writing. But with founding CEO Stuart Tanz at the helm — the same executive who previously shepherded Pan Pacific Retail from a $150 million IPO in 1997 to a $4 billion buyout by Kimco Realty in 2006 — this company is a well-oiled machine with a nearly 5% dividend that nicely supplements any possible share price appreciation even as the health and spending trends of retail consumers ebbs and flows.

To be fair, some analysts view Retail Opportunity Investments’ focus on the West Coast geography as a drawback relative to nationally diversified peers. But we have confidence in its long-term prospects for steadily growing funds from operations nonetheless.

To learn more about Retail Opportunity Investments, visit its investor relations page and read its latest quarterly update.

Ready to elevate your investing journey to new heights?

Unlock the power of informed decision-making with our daily newsletter, tailored to empower investors like you. The Early Bird delivers crucial insights that keep you ahead in the stock market, ensuring you make profitable decisions.

Why Join The Early Bird?

  • Join millions who trust us

  • Discover daily recommendations

  • Unlock hidden opportunities

  • Make informed investment decisions