Are you wondering what the best highest yielding REITs are for 2013 and beyond? A real estate investment trust is a nice way to get investing in real estate in the stock market as it provides a nice yield to investors and the potential for capital appreciation at the same time. Below I will list some of the best and highest yielding REITs on the market to consider. If you are someone who likes income producing stocks or ETFs and you like getting income every month from your investments, I think you should definitely consider these equities.
- REITs generally give you a nice yield and exposure to residential or commercial real estate.
- In a low interest rate environment like we have currently, real estate tends to perform well.
- With the stock market barely returning 5 percent a year and other investments underperforming, REITs are even more attractive.
- It is an alternative to going out and buying real estate, which many people do not have the money to do.
Top 5 REITS to Consider for 2013 and Beyond
Here are five of my favorite real estate investment trusts I think will outperform going forward:
#1 - ARMOUR RESIDENTIAL REIT INC COM ARR: NYSE
"ARMOUR Residential REIT, Inc. (ARMOUR) is an externally-managed Maryland company managed by ARMOUR Residential REIT, Inc. (ARRM).
ARMOUR invests primarily in hybrid adjustable rate, adjustable rate and fixed rate residential mortgage backed securities issued or guaranteed by a United States Government-sponsored entity (GSE), such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or guaranteed by the Government National Mortgage Administration, a United States Government corporation (Ginnie Mae) (collectively, Agency Securities)."
- Armour has a 2.2 billion dollar market cap with a share price of $7.04
- The current annual dividend yield of Armour is 13.64 percent.
- The company pays a monthly dividend of .08.
- The stock has a trailing price to earnings ratio of 7.68.
#2 -ANNALY CAP MGMT INC COM NLY: NYSE
"Annaly Capital Management, Inc. (Annaly) owns, manages, and finances a portfolio of real estate related investments, including mortgage pass-through certificates, collateralized mortgage obligations (CMOs), Agency callable debentures, and other securities representing interests in or obligations backed by pools of mortgage loans. Its wholly owned subsidiaries offer real estate, asset management and other financial services."
- Annaly has a market cap of 14.5 billion with a current share price of $14.85 per share.
- The current annual dividend yield of Annaly is 12.14 percent. The quarterly dividend is .45 per share.
- The stock has a trailing price to earnings ratio of 10.28.
#3 - PS BUSINESS PKS INC CALIF COM PSB: NYSE
"Multi-Building Business Parks in Great Locations. Pride of Ownership. Onsite Leasing and Management Teams Ready to Serve You in Many Great Locations."
"PS Business Parks , Inc. (NYSE:PSB) is a publicly traded Real Estate Investment Trust (REIT) specializing in leasing commercial multi-tenant flex, office and industrial space throughout the United States with locations in Arizona, California, Florida, Maryland, Oregon, Texas, Virginia, Washington." (Source: PSbusinessparks.com).
- PS Business parks has a current market cap of 1.7 billion with a share price of $70.90.
- The current annual dividend of PSB is 2.48 percent, paid out quarterly at .44 per share.
- The stock has a trailing P/E ratio of 91.
Full Disclosure: The author does not own any of the equities mentioned above. This post is for educational purposes only and should not be viewed as investing advice.
#4 - ONE LIBERTY PPTYS INC COM OLP: NYSE
"One Liberty Properties, Inc. (OLP) is a self-administered and self-managed real estate investment trust (REIT). The Company acquires, owns and manages a geographically diversified portfolio of retail (including furniture and office supply stores), industrial, office, flex, health and fitness and other properties, a substantial portion of which are under long-term leases.
As of December 31, 2011, the Company owned 89 properties, one of which is vacant, and one of which is a 50% tenancy in common interest, and participated in five joint ventures that own five properties.
As of December 31, 2011, the 89 properties owned by it and the five properties owned by its joint ventures were located in 29 stateare located in 29 states and has an aggregate of approximately 5.5 million square feet of space (including approximately 106,000 square feet of space owned by the joint ventures in which it participates). In March 2012, it acquired three Applebee's restaurant locations in the Atlanta."
- OLP has a current market cap of 338 million with a share price of $22.55.
- The current annual dividend yield of the company is 6.21 percent. The quarterly dividend is .35 cents per share.
- The trailing P/E ratio of OLP is .87.
#5 - Vornado Realty Trust (VNO)
Vornado Realty Trust (Vornado) is an integrated real estate investment trust (REIT). Vornado conducts its business through, and substantially all of its interests in properties are held by, Vornado Realty L.P., a limited partnership (the Operating Partnership).
As of December 31, 2011, the Company was the sole general partner of, and owned approximately 93.5% of the common limited partnership interest in the Operating Partnership. Vornado operates in five business segments: New York Office Properties, Washington, DC Office Properties, Retail Properties, Merchandise Mart Properties and Toys R Us (Toys).
- In January 2012, the Company sold 350 West Mart Center.
- On December 23, 2011, the Company acquired 97.5% interest in 1399 New York Avenue.
- In December 2012, the Company acquired the retail condominium located at 666 Fifth Avenue.
- In December 2012, the Company acquired a 58.75% interest in Independence Plaza.
- VNO has a market cap of 15.9 billion with a current share price of $85.17.
- The current annual dividend yield is $3.43 percent. They pay a quarterly dividend of .73 cents.
- VNO has a trailing P/E ratio of about 50.
Final Thoughts on REITS
Again, if you are someone looking for a nice steady income each month or quarter, I think REITs might be an attractive option.
Hopefully these high yielding REITs for 2013-14 and beyond are what you're looking for!