Realty Income is structured as a REIT, and its monthly distributions are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants. To date, the company has declared 608 consecutive common stock monthly dividends throughout its 54-year operating history and increased the dividend 109 times since its public listing in 1994. It is a top real estate member of the Dividend Aristocrats index.
Realty Income stock comes with a 4.94% distribution monthly. The Stifel has set its price target at $71, and the consensus target is $70.57. The closing share price was $61.53 on Thursday.
SL Green Realty
This is a leading large-cap office REIT that top analysts on Wall Street prefer now, and it is a solid and somewhat contrarian play. SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office landlord, is a fully integrated REIT focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties.
As of December 31, 2020, it held interests in 88 buildings totaling 38.2 million square feet. This included ownership interests in 28.6 million square feet of Manhattan buildings and 8.7 million square feet securing debt and preferred equity investments.
Shareholders receive a 13.91% distribution. SL Green Realty stock has a $30 target price at BMO Capital Markets. The $31.50 consensus is higher, but the stock ended Thursday’s session at $23.32.
STAG Industrial
This strong industrial REIT play offers solid upside potential. STAG Industrial Inc. (NYSE: STAG) is a self-managed full-service real estate company primarily focused on the acquisition, ownership and management of single-tenant, Class B warehouses in secondary markets across the United States. The company continues to focus on expansion of its acquisition platform to find acquisitions to grow the portfolio.
Top Wall Street analysts expect management to be aggressive acquirers over time. Additionally, the in-place portfolio should deliver stable organic growth supported by healthy property-level fundamentals.
Investors receive a 4.53% distribution. The Raymond James price objective is $36. The consensus target was last seen at $36.75. STAG Industrial stock closed on Thursday at $32.71.
Shares of these top companies are way off the highs printed this time last year, and all seven have paid dependable dividends for years. While some mortgage REITs also pay monthly dividends, they are more vulnerable to a shake-out in a volatile environment, and we wanted to focus on the companies that had hard assets. It is important to remember that REIT distributions may contain return of principal in their monthly distribution payments.
Originally published at 24/7 Wall St.
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