Top REITs to Consider for High-Yielding Passive Income in August
Mid-America Apartment Communities, Invitation Homes, and Realty Income are among the top real estate investment trusts (REITs) that have consistently demonstrated their commitment to paying attractive dividends. These companies have successfully navigated the market's ups and downs while maintaining their track record of steady dividend growth.
Capitalizing on Growing Demand for Apartments
Mid-America Apartment Communities has been a standout performer in the REIT sector, with an impressive history of paying dividends. The company recently declared its 126th consecutive quarterly dividend, paying $6.06 per share annually. This represents a more than 4% yield at its recent share price.
One key factor driving Mid-America's success is its ability to capitalize on growing demand for apartments in the Sun Belt region where it operates. The REIT has an extensive portfolio of properties in high-growth areas, which should continue to drive steady rent growth and occupancy levels. In addition, Mid-America currently has nearly $1 billion worth of apartment development projects underway that it expects to complete over the next few years.
The company's CEO, Brad Hill, stated in its recent second-quarter earnings report: "The strengthening demand/supply dynamic coupled with our growing development pipeline, which is nearing $1 billion, should support robust revenue and earnings performance and enhance long-term value creation." This commitment to growth and expansion has contributed significantly to the REIT's consistent dividend growth.
Cashing in on Demand for Rental Housing
Invitation Homes stands out for its impressive record of raising its dividend every year since its initial public offering (IPO) in 2017. The current dividend is $0.29 per share quarterly, providing a yield approaching 4% at the most recent share price.
The REIT owns and manages single-family rental properties in high-demand housing markets, driving healthy rent growth of 4% in the second quarter. Additionally, Invitation Homes steadily invests capital to grow its rental property portfolio. In the second quarter, it spent $350 million to acquire over 1,000 homes and provided a developer with $33 million in funding to build a 156-home community that it can acquire in the future.
These investments are providing the REIT with incremental sources of income to support its steadily rising dividend. With strong demand for rental housing and a steady pipeline of new investments, Invitation Homes is well-positioned to continue increasing its payout in the years ahead.
The Name Says It All
Realty Income has one of the best dividend track records in the REIT sector, having increased its monthly dividend 131 times since its public market listing in 1994. This includes an impressive streak of 111 consecutive quarters of dividend growth. At the current payment level of $0.269 per share a month and $3.228 annually, Realty Income has a yield approaching 6%.
The diversified REIT backs this payout with very stable rental income from its retail, industrial, gaming, and other properties leased to leading companies under long-term triple-net (NNN) agreements. These leases require tenants to cover all property operating costs, including routine maintenance, real estate taxes, and building insurance.
Realty Income also has a very strong financial profile, giving it the flexibility to continue acquiring properties secured by long-term net leases. The REIT currently expects to invest about $4 billion this year to expand its portfolio, enabling it to continue increasing its high-yielding monthly dividend.
High-Quality, High-Yielding REITs
Mid-America Apartment Communities, Invitation Homes, and Realty Income pay attractive dividends that have consistently grown over time. With more growth ahead, they are great REITs to consider buying this month for a rising stream of passive dividend income.
However, it's essential to conduct thorough research and due diligence before making any investment decisions. As with any investment, there are risks involved, and it's crucial to evaluate the individual performance of each REIT and its potential for long-term growth.
Conclusion
In conclusion, Mid-America Apartment Communities, Invitation Homes, and Realty Income are three top REITs that have consistently demonstrated their commitment to paying attractive dividends. Their strong financial profiles, high-quality portfolios, and steady dividend growth make them great stocks to consider buying this month for passive income.
While there are risks involved with any investment, these REITs have a proven track record of delivering consistent returns to shareholders. As the market continues to evolve, it's essential to stay informed and adapt your investment strategy accordingly.
With their impressive dividend growth streaks and strong financial profiles, Mid-America Apartment Communities, Invitation Homes, and Realty Income are well-positioned to continue paying attractive dividends in the years ahead.