Real Estate Investment Trusts, or REITs, are popular dividend stocks because they have to deliver 90% of their taxable income back to shareholders. That’s the law for REITs, and that means investors can depend on a nice dividend as those profits come flowing back into shareholders’ pockets.
Real Estate Investment Trusts can be commercial or residential real estate companies, or they can just be a business that owns a lot of land like a timber company with vast real estate holdings.
I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, nine REIT stocks are solid buys.
Here they are, in alphabetical order. Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.”
American Tower (NYSE:AMT) is a wireless and broadcast communications infrastructure company. In the last 12 months, AMT stock has gained 28%, compared to smaller gains by the broader markets. American Tower stock also pays a dividend of 1.3%. AMT stock gets a “B” grade for sales growth, an “A” grade for earnings growth, an “A” grade for earnings momentum, an “A” grade for its ability to exceed the consensus earnings estimates on Wall Street and an “A” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of AMT stock.
AvalonBay (NYSE:AVB) develops, redevelops, acquires, owns and operates multifamily communities. AvalonBay is up 16% in the last year and pays a dividend yield of 2.6%. AVB stock gets an “A” grade foe operating margin growth, an “A” grade for earnings growth and a “B” grade for earnings momentum. For more information, view my complete analysis of AVB stock.
Boston Properties (NYSE:BXP) operates in Boston, New York, Princeton, San Francisco and Washington, D.C. Year-to-date, Boston Properties is up 10%. BXP also pays a dividend yield of 2%. BXP stock gets a “B” grade for sales growth, an “A” grade for operating margin growth, an “A” grade for earnings momentum, an “A” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “B” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of BXP stock.
Equity Residential (NYSE:EQR) is another REIT that focuses on multi-family residential properties and has posted a gain of 10% in the last four months. Equity Residential pays a dividend yield of 2.1% and gets a “B” grade for sales growth, an “A” grade for its ability to exceed the consensus earnings estimates on Wall Street and an “A” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of EQR stock.
General Growth Properties (NYSE:GGP) has ownership of 136 regional malls in 41 states. Since the start of 2012, General Growth stock has posted a return of 22%. GP stock gets an “A” grade for earnings momentum and an “A” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of GGP stock.
Health Care REIT (NYSE:HCN) is an aptly named REIT involved mostly with seniors housing and health care real estate. Year-to-date, Health Care REIT stock has posted a gain of 4%, and provides its shareholders with a dividend yield of 5.2%. HCN stock gets an “A” grade for sales growth, a “B” grade for earnings growth and an “A” grade for earnings momentum. For more information, view my complete analysis of HCN stock.
Public Storage (NYSE:PSA) is involved with self-storage facilities, as its name would suggest. PSA stock has gained 25% in the last 12 months, and pays a dividend yield of 3%. Public Storage stock gets a “B” grade for operating margin growth, a “B” grade for earnings growth and a “B” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of PSA stock.
Simon Property Group (NYSE:SPG) is an REIT dealing with regional malls, Premium Outlets and community/lifestyle centers. In the last 12 months, Simon Property stock has gained 36%. SPG stock pays a dividend yield of 2.6% and gets an “A” grade for operating margin growth, an “A” grade for earnings growth, an “A” grade for earnings momentum, an “A” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. For more information, view my complete analysis of SPG stock.
Ventas (NYSE:VTR) owns seniors housing and healthcare properties in the U.S. and Canada. VTR rounds out the list with a gain of 7%, year-to-date, and a dividend yield of 4.2%. Ventas stock gets an “A” grade for sales growth and a “B” grade for earnings momentum. For more information, view my complete analysis of VTR stock.
Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.
