3 REITs To Watch In July With Dividends Above 8%

3 REITs To Watch In July With Dividends Above 8%

While high yield investments are becoming more difficult to find as interest rates remain low, the three following REITs still have dividends above 8% along with potential price growth over the next year. 

Global Net Lease GNL

Global Net Lease is a diversified REIT with a focus on industrial and office properties. The REIT grew its portfolio from 288 properties in the first quarter of 2020 to 306 properties by the end of the first quarter. The company also grew its revenue each quarter over the last year. 

Even though the REIT’s portfolio, revenue, and AFFO have increased since the beginning of 2020, the share price still hasn’t fully recovered to its pre-pandemic level. The most recent analyst price target anticipates roughly 12% upside in price to go along with the REIT’s 8.6% dividend yield. 

American Finance Trust AFIN

This retail REIT has a growing portfolio of single- and multi-tenant retail and distribution properties across the United States and has more acquisitions in the pipeline for 2021. 

While this REIT is carrying a heavier debt load than its peers, it has been improving its capital structure by lowering its average interest rate and extending its debt maturity schedule. It’s also priced attractively with a price to FFO multiple of around 9.4x and a 45% discount to its estimated NAV. 

Between the valuation and the high dividend yield of 10.22%, this REIT could make for an excellent income investment if it continues improving its balance sheet. 

Annaly Capital Management NLY

Annaly is the largest mortgage REIT in terms of market cap and is sitting on over $85 billion in assets. The company focuses on agency mortgage-backed securities, meaning the majority of its portfolio is guaranteed by the federal government.

Low mortgage rates have brought the REIT’s shares down, but that’s opened up the opportunity for investors to buy the stock at a lower price to book value.

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