Dividend Stocks 2021 Top 5 REITs

Some of the largest dividend stocks in 2021 are Real Estate Investment Trusts (REITs). At Dividend Income Streams we love having a diversified dividend portfolio and generating passive dividend income for different business sectors. Investing in physical real estate may work well for some but we would rather invest in several REITs, sit back and collect the dividends while a professional management team oversees the day-to-day operations.

What are Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) are companies that owns, operates or finances real estate properties. REITs have been a popular investment for dividend seekers as they allow an individual to invest in a portfolio of real estate assets by investing directly into the company or REIT. There are many real estate investments a REIT can focus on including apartment buildings, office buildings, retail centers, data centers, warehouses, hotels, medical facilities, etc. Some REITs specialize in one sector of real estate while others have several types of properties in their portfolio.

Why REITs are popular investments for dividend investors

REITs are required to pay at least 90% of their taxable income to shareholders. Most REITs generate the income which is paid to shareholders in the forms of dividends by leasing out space which they operate and collecting the rent. There is also a class of REITs called mREITs which is a mortgage REIT. Unlike traditional REITs, mREITs don’t own physical real estate directly, instead they finance real estate and generate income from the interest on their financing deals.

With 90% of the taxable income REITs generate being dispersed to shareholders in the form of dividends REITs often offer above average dividend yields. High yielding REITs can be very attractive to an investor looking to generate passive income or utilize the powers of compounding by reinvesting the dividends.

Dividend Income Streams favorite REITs

While there are many REITs an individual can invest in, we put a list together of our favorite REITs for Dividend Stocks 2021

5. WPC Carey (WPC)

• Invests in industrial, warehouse, office, retail and self-storage properties

• As of 6/7/21

  • Market cap of $13.91 billion

  • Share Price of $78.18

  • Dividend of $4.19 per share

  • Quarterly dividend payer

  • Forward Dividend Yield of 5.36%

4. AGNC Investment Corp (AGNC)

• Invests in residential mortgage securities and collateralized mortgage obligations where the principal and interest payments are guaranteed by the United States Government

• As of 6/7/21

  • Market cap of $9.78 billion

  • Share Price of $18.64

  • Dividend of $1.44 per share

  • Monthly dividend payer

  • Forward Dividend Yield of 7.73%

3. Starwood Property Trust (STWD)

• Operates four business segments

  • Commercial and Residential lending

  • Infrastructure lending

  • Property

  • Investing and Servicing segments

• As of 6/7/21

  • Market cap of $7.42 billion

  • Share Price of $25.84

  • Dividend of $1.92 per share

  • Quarterly dividend payer

  • Forward Dividend Yield of 7.43%

2. Omega Healthcare Investors (OHI)

• Invests in long-term healthcare industry across Skilled Nursing Facilities and Assisted Living Facilities

• As of 6/7/21

  • Market cap of $8.90 billion

  • Share Price of $37.84

  • Dividend of $2.68 per share

  • Quarterly dividend payer

  • Forward Dividend Yield of 7.01%

1. Realty Income (O)

• Invests in commercial real estate properties with more than 6,600 locations in their portfolio

• As of 6/7/21

  • Market cap of $26.48 billion

  • Share Price of $70.90

  • Dividend of $2.82 per share

  • Monthly dividend payer

  • Forward Dividend Yield of 3.98%