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 investors receive a 5.72% distribution. Stifel’s $71.25 price target is well above the $53.75 consensus target and the most recent close at $54.00.
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 June 30, 2023, SL Green held interests in 60 buildings totaling 33.1 million square feet. This included ownership interests in 28.8 million square feet of Manhattan buildings and 3.4 million square feet securing debt and preferred equity investments.
The distribution yield is 7.86%. SL Green Realty stock has a $48 target price at Piper Sandler. The $34.86 consensus target is less than Tuesday’s close at $40.94.
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 4.04% distribution. The Raymond James price objective is $39. The consensus target is $39.30. On Tuesday, STAG Industrial stock closed at $36.28.
All these top REITs are way off the highs printed last year, and they have paid dependable dividends for years. While there are also mortgage REITs that 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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