REITs with the Best Dividends in 2024

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate. REITs allow individual investors to earn a share of the income produced through commercial real estate ownership without actually having to buy, manage, or finance any properties themselves. They pool funds from multiple investors to purchase and manage a diversified portfolio of properties. These properties include shopping malls, office buildings, apartments, and hotels.

REITs are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends. This makes them attractive for income-seeking investors. They are traded on major stock exchanges, offering liquidity and the potential for capital appreciation alongside regular dividend payments. The two main types of REITs are Equity REITs, which own and manage real estate properties, and Mortgage REITs (mREITs), which invest in real estate mortgages and related assets.

Investing in REITs provides exposure to the real estate market with the benefits of diversification, professional management, and regular income distributions​ (Investing Simple)​​ (Sure Dividend)​.

Here are five REITs that offer some of the best dividend yields in 2024, along with their stories:

Apollo Commercial Real Estate Finance (ARI)

Dividend Yield: 13.9%

Story: ARI focuses on investing in commercial real estate debt securities, including senior mortgages and mezzanine loans. With a diverse portfolio spread across hotels, office properties, and urban pre-development projects, ARI has shown resilience in managing its investments even in a complex market environment. In 2023, it maintained strong earnings and continued to provide high dividends to its shareholders​ (Sure Dividend)​.

AGNC Investment Corp. (AGNC)

Dividend Yield: 15.1%

Story: AGNC is a mortgage REIT that primarily invests in agency mortgage-backed securities. These are guaranteed by government-sponsored enterprises like Fannie Mae and Freddie Mac. AGNC leverages its portfolio to generate high dividends. In Q4 2023, AGNC reported comprehensive income of $1.00 per common share and maintained a strong dividend yield due to its leveraged investment strategy​ (Sure Dividend)​.

Ares Commercial Real Estate (ACRE)

Dividend Yield: 14.4%

Story: ACRE is a specialty finance company primarily involved in originating and investing in commercial real estate loans. Despite challenges such as higher inflation rates and shifts in work-from-home trends affecting commercial real estate, ACRE has managed to generate substantial interest income. It has a strategic focus on senior loans across multifamily, office, and mixed-use properties. This helps sustain its high dividend yield​ (Sure Dividend)​.

Realty Income Corporation (O)

Dividend Yield: 5.83%

Story: Known as “The Monthly Dividend Company,” Realty Income specializes in commercial real estate, primarily retail properties. It has a long history of paying consistent monthly dividends, which makes it a favorite among income-oriented investors. With a diverse portfolio and a stable tenant base, Realty Income has continued to deliver reliable dividends even through market fluctuations​ (Investing Simple)​.

Public Storage (PSA)

Dividend Yield: 4.26%

Story: Public Storage is a leader in the self-storage industry, operating thousands of storage facilities across the U.S. It generates revenue by renting storage units to both individuals and businesses. PSA’s consistent performance and ability to generate steady cash flows from its extensive network of storage facilities have enabled it to maintain regular dividend payments to its investors​ (Investing Simple)​.

Here’s a table summarizing the information on the five REITs:

REITDividend YieldPrimary FocusKey Features
AGNC Investment Corp. (AGNC)15.1%Mortgage-backed securitiesInvests primarily in agency mortgage-backed securities; utilizes leverage to enhance returns.
Apollo Commercial Real Estate Finance (ARI)13.9%Commercial real estate debtInvests in senior mortgages and mezzanine loans; diversified portfolio across hotels, offices, and urban pre-development.
Ares Commercial Real Estate (ACRE)14.4%Commercial real estate loansSpecializes in originating and investing in commercial real estate loans; focus on senior loans across multifamily, office, and mixed-use properties.
Realty Income Corporation (O)5.83%Commercial real estateKnown for monthly dividends; diversified portfolio primarily in retail properties.
Public Storage (PSA)4.26%Self-storage facilitiesOperates a vast network of storage facilities across the U.S.; generates revenue from renting storage units.

These REITs stand out for their high dividend yields. They also stand out for their robust business models and ability to navigate varying market conditions. Investing in these REITs can provide a reliable income stream, particularly for those focused on dividend returns.

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Author: chrisk

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