REITS are becoming an investment that I’m strongly considering making a sizable portion of my self directed retirement account. If you haven’t heard of a REIT before, it literally stands for real estate investment trust. They allow you to basically become involved in real estate without having any physical property in your name because you are investing in companies that do the investing for you. So basically you get some skin in the real estate game without the hassle.
Since I enjoyed the content that Matthew from The Right Trader put out on this topic, I have posted his video below as well as a transcription of the video. If you recall, he also did a great job talking about monthly dividend stocks, and in that post, you got a glimpse of REIT’s, but today, I present you a full post on the topic and let them share with you the best dividend paying REITS you can buy.
Which Real Estate Investment Trusts are Best for Monthly Dividends?
Matthew: Hey, what’s going on everyone. Matthew from the righttrader.com back again with another stock market video. Today, we’re going to be talking about the best REITs out there. For those who don’t know what REITs are, those are real estate, investment, trusts. The reason why they are valuable and a good addition to your portfolio potentially is because it allows you to be exposed to real estate without actually owning yourself any physical real estate because you are investing in companies like Realty Income that owns a whole bunch of real estate. You a lot of the time will be getting dividend from those REIT stocks. Now, for example, Realty Income by far one of the best stocks in the stock market and pays a great dividend actually has monthly dividend payouts, which means that every month you receive a portion of this 3.5, 1% dividend. It’s even known as the monthly dividend company. This is actually a stock that I’ve included in two or three of my best stock videos. It’s actually outperformed the overall stock market since 1994 with an average compound return of 16.5 with those dividends, so really impressive stuff.
If we take a quick look at the chart here, you’ll see that it’s a company that virtually does not stop going up. This grey line right here is all the dividend payouts on a monthly basis that have been paid out. What’s interesting with these REIT stocks is they tend to actually be pretty resistant to bear markets and have pretty minimal drops. It only dropped around 40%. That was back in 2008 during the complete market crash. They hold up pretty well in bad times. Overall, their performance is very steady. Typically, these are really stocks that just keep moving higher and higher in value. That’s why I haven’t made this video for a specific year it’s because these are, in my opinion, the best REIT stocks. I think that most of them if not all are just going to continue going up over time.
First on this list is Realty Income. Now, next up we’ve got W. P. Carey, this is another REIT stock here. It is also a big dividend payer 4.9% on a yearly basis. This one pays out its dividends every three months so quarterly. Zooming out once again, you’ll be able to see the great performance of the stock. Like I said, these are really stocks that tend to just go up over time and are just very stable. That’s what I like about them. That’s why I think they’re such a good addition to any portfolio, not financial advice just my personal opinion. At the end of the day, having stocks like these will stabilize your portfolio and also make them more resistant in bear times, and on top of that, since these real estate companies tend to get rent money, they tend to have very regular dividend payouts and that’s a rarity.
Next up, we’ve got Welltower. This is a REIT that actually focuses a little bit more on healthcare type properties or nursing homes. Pays out a big 4.14% dividend. Once again, if we go and look at the chart, right here you can see the all-time view of the stock, and how it just keeps going up over time. Over time, you’ll keep racking up those dividends as well. That’s why I love REIT stock so much.
Next up, we’ve got MAA, this one stands for Mid-America Apartment Communities. It is a REIT that focuses more on southeastern properties. Yet again, we have a stock that pays out a very steady 2.8%, 3% dividend combined with very stable and consistent stock returns as well.
The last stock for this best REITs video going to be a little bit of a wildcard. This is MRRL, which is a mortgage REIT that is two time leveraged, and it’s a UBS ETN, which is similar to an ETF. It actually pays out a massive, almost 20% dividend on a yearly basis. To make things even sweeter, those dividend payouts are actually on a monthly basis. You are not going to find stocks like this out there. This is really unique and rare so to say. I’ve made a whole separate video on this. I’ll leave a link to that in the description. It is more risky. It comes with a bit more risk and a bit more reward. However, that dividend return is real and something that is pretty crazy when you think about it. However, with those bigger dividends, these stock tends to be a little bit less stable, although more recently it’s been steady up trending.
With that being said, this completes my video for the best REITs out there. Make sure to leave a like and subscribe for more videos like this. Also check out my Stock Price Predictions playlist, link to that in the description of this video. Also don’t forget to check out my technical analysis master course less than $20, 30-day money back guarantee. You can’t go wrong. You have nothing to lose by giving it a try. If you’re not satisfied within 30 days, you’ll get a 30-day money back guarantee. Buying and selling opportunities, candlesticks, you’ll learn how to spot everything. It’s the Ultimate Guide Technical Analysis. Also don’t forget to follow me on Twitter. Thanks for watching everyone and have a great day.