7 Great REITs That Will Pay You Handsomely

  • Crown Castle International (CCI): A wireless infrastructure provider in perfect position for 5G build out.
  • CubeSmart (CUBE): A smaller self-storage player that has plenty of growth potential in this kind of market.
  • Extra Space Storage (EXR): A larger self-storage player that also has a reinsurance business.
  • Lamar Advertising (LAMR): This is a 120-year-old advertising company that specializes in billboards, benches, and airports.
  • Prologis (PLD): One of the key global supply chain players focusing on logistics space around the globe.
  • Duke Realty (DRE): A veteran in the industrial and medical real estate sectors.
  • First Industrial (FR): As its name suggests, it’s focused on industrial and warehouse space throughout the U.S.
Real estate investment trust REIT on an office desk. Great REITs
Source: Vitalii Vodolazskyi / Shutterstock

The markets seem to be moving around trying to account for all the contingencies that are on the world stage at the moment. And that makes for some volatile trading. But when it comes to this kind of market, it’s good to have solid investments in your portfolio like the great real estate investment trusts (REITs) in this article.

The reason to look at REITs now is that as rates begin to rise, it gives REITs more pricing flexibility. Tenants get stuck choosing between a rising lease rate or switch to another property where the costs may well be even higher.

And the one thing we know is, the Federal Reserve will be raising its overnight rate, which will also trickle into commercial lending rates. Also, the Fed is going to start unwinding its bond portfolio of Treasuries and mortgage-backed securities.

Some of the implications all this will have on stocks are still unclear, since we’ve never been here before.

That’s why it makes even more sense to find some quality stocks with top-rated dividends to anchor your portfolio as things remain bumpy. Here’s some great REITs to check out:

CCI Crown Castle International $195.70
CUBE CubeSmart $53.61
EXR Extra Space Storage $213.89
LAMR Lamar Advertising $114.70
PLD Prologis $166.64
DRE Duke Realty $59.33
FR First Industrial $62.30

Crown Castle International (CCI)

Image of Crown Castle (CCI) logo on a web browser highlighted through the lens of a magnifying glass
Source: Casimiro PT / Shutterstock.com

One of the important elements in finding a solid long-term pick in these kinds of markets is to look to companies that are focused on utility-like sectors. In this case, I’m talking about telecom.

We’re in a digital age and there’s nothing more crucial than the mobility of data. Telecoms throughout the world are building out 5G networks to replace the 4G ones, with the promise of speeds rivaling fiber and copper wire networks. Crown Castle International (NYSE:CCI) owns most of the towers and related properties where telecoms put their antennas and repeaters as well as the rest of the equipment.

CCI stock has been very popular for a while, but it still has an attractive 3% dividend and it’s up 11% in the past month.

This stock has a “B” rating in my Dividend Grader.

CubeSmart (CUBE)

In this photo illustration CubeSmart logo of a real estate investment trust (CUBE) is seen on a mobile phone and a computer screen.
Source: viewimage / Shutterstock.com

Remote work has made the U.S. a very mobile society. And there’s also the fact that many people are quitting their jobs at significant rates. Both these trends are also merging since many people are quitting now that employers are mandating return to work policies that are making home-based workers uninterested in going back to the 9-5 grind.

Some of this is also being exacerbated by the cost of child care. When child care costs eat up almost an entire salary, it may make more sense for one of the spouses to quit their job and stay home with the kids.

Whatever the reason, people are moving. Some are moving for new, more affordable cities and towns. Others are moving for a new job opportunity. Still others are simply downsizing. Whatever the reason the winners are some great REITs in the self-storage sector.

CubeSmart (NYSE:CUBE) stock has gained nearly 9% in the past month, and still has a safe, solid 3.2% dividend.

This stock has a “B” rating in my Dividend Grader.

Extra Space Storage (EXR)

Extra Space Storage (EXR) facility exterior and trademark logo.
Source: Ken Wolter / Shutterstock.com

To underscore everything I said about CUBE, Extra Space Storage (NYSE:EXR) is like CUBE’s older brother. It has a $30 billion market capitalization compared to CUBE’s $12 billion.

Both are great REITs, but EXR is a bigger firm, which makes its more stable and reliable. CUBE can grow faster in a hot market. But right now, the market seems to be running hot and cold, so EXR is a solid choice until there’s more consistent long-term direction.

Although another strategy is to buy a little of both and get the best of both worlds. EXR stock has gained nearly 9% in the past month, and it has a healthy 2.8% dividend.

This stock has an “A” rating in my Dividend Grader.

Lamar Advertising (LAMR)

Dillsburg Veterinary Center billboard
Source: Andriy Blokhin / Shutterstock.com

Any company that has been around since 1902 and is still a vibrant company making money in its key market has got some serious stability and market knowledge.

Lamar Advertising (NASDAQ:LAMR) has stuck to an industry that seems like it was more suited to bygone times. Billboard advertising may not seem like a great business in the age of TikTok and Instagram, but it’s still a good business. LAMR has a nearly $12 billion market cap and is one of those reliable shelters in almost any storm.

And when you’ve been around through two world wars and the Great Depression, you have a unique perspective on managing a long-term business profitably, even into the 21st Century.

LAMR stock has gained almost 5% in the past month and has a generous 3.8% dividend to reward long-term investors.

This stock has a “B” rating in my Dividend Grader.

Prologis (PLD)

The Prologis (PLD) logo displayed on a smartphone screen.
Source: rafapress / Shutterstock.com

One of the other major trends that will continue beyond the current situation is the digitization of the supply chain. It has remained a fairly analog affair until now.

But as e-commerce continues to dominate the retail side of consumer behavior, and global supply chains have grown in scope and complexity, there are enormous opportunities for REITs in the warehouse and logistics space. Prologis (NYSE:PLD) is one of the great REITs in the sector.

Currently PLD has warehouses in 19 different countries on five continents, including the most important ports in the biggest nations on Earth. Its influence will only continue to grow.

PLD stock has gained more than 11% in the past month, and it has an attractive 1.9% dividend.

This stock has a “B” rating in my Dividend Grader.

Duke Realty Corp (DRE)

Duke Realty (DRE) corporate headquarters. Duke Realty owns and operates more than 149 million square feet of logistics properties.
Source: Jonathan Weiss / Shutterstock.com

If you’re looking for a solid U.S.-based REIT that has a 50-year history of successfully managing operations in the industrial and medical real estate sectors, then Duke Realty Corp (NYSE:DRE) is an excellent choice.

Duke Realty operates in a variety of sectors. which include healthcare buildings as well as retail, manufacturing, governmental, wholesale, and distribution properties. That gives DRE a lot of diversity and gives it the advantage being able to focus on different properties when the economy presents the opportunities.

DRE stock has gained almost 11% in the past month, and still has a 1.9% dividend. Its reputation, reliability, and durability make this a great long-term choice.

This stock has a “B” rating in my Dividend Grader.

First Industrial (FR)

Back View of the Head of the Project Holds Laptop and Discussing Product Details with Chief Engineer while They Walk Through Modern Factory., FR rents out these spaces in the U.S.
Source: Gorodenkoff / Shutterstock.com

Another trend that’s taking place in part due to the supply chain issues is that companies are now more motivated than ever to take back the means of production from abroad.

Decades ago, manufacturing left the U.S. for cheaper labor outside the country. But now, companies are starting to realize that the cheap labor is no longer cheap, and even it can produce goods cheaply abroad, it’s now costing an arm and a leg to get it back as finished goods in the U.S. market.

For more than a quarter decade, First Industrial (NYSE:FR) has been building for small and large industrial and manufacturing clients and then managing those properties as well. Plus, new incentives from the U.S. government will also speed the repatriation of many manufacturing and industrial businesses.

FR stock has gained 8% in the past months and has a 1.9% dividend to underscore its investor-friendly focus.

This stock has a “B” rating in my Dividend Grader.

On the date of publication, Louis Navellier has positions in CUBE, and EXR in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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