Many investors fantasize about living off dividends in retirement. However, retirees have hurdles on all fronts in today's environment, which gets distinguished by increased life expectancies, meager bond rates, and elevated stock market valuations compared to history to generate a consistent income stream that will last a lifetime.
We're all motivated by the same goals: maintaining a reasonable quality of life in retirement and not outliving our savings.
This is where dividend investing comes in to achieve these goals. Regardless of market conditions, investing in dividend stocks can help you safeguard your wealth and provide an increasing income stream over time.
A popular way to receive a regular income is by investing in Real Estate Income Trusts (REITs). REITs need to distribute more than 90% of their earnings every year to maintain their tax-free status, giving investors the opportunity to receive high dividend payments.
Some REITs pay out their dividends quarterly, while others pay monthly. This is an advantage for investors to increase their income or reinvest their money.
Not knowing which REITs to invest in can be daunting, as you want to choose companies that have strong growth prospects with adequate yields.
We have found three REITs for you to consider that are yielding more than 7% that can get added to your income portfolio.
Blackstone Mortgage Trust (BXMT)
Blackstone Mortgage Trust Inc, a real estate finance business, originates senior loans secured by commercial properties in North America, Australia, and Europe. Their investment goal is to protect and preserve shareholder capital while generating acceptable risk-adjusted returns, mainly through dividends produced from current loan revenue.
Blackstone's loan portfolio comprises loans backed by high-quality, institutional assets in major markets sponsored by seasoned, well-capitalized real estate investment owners and operators. These senior loans are financed by various methods, depending on their assessment of cautious strategies for every one of their investments.
With $649 billion in assets under management, Blackstone's asset management businesses include investments that focus on the following on a global basis:
- Private equity
- Public debt and equity
- Real estate
- Life sciences
- Non-investment grade credit
- Growth opportunity
- Real assets and secondary funds
As of March 31, 2021, Blackstone has $196 billion in real estate business, with $368 billion in its real estate portfolio.
BXMT Stock and Dividend News
BXMT stock has a dividend yield of 7.67%, with a dividend of $0.62 per share on Class A common stock. The next dividend payment will be in July 2021.
BXMT stock is currently trading at $32.95 as of June 24, 2021.
Blackstone Mortgage Trust First Quarter Financial Result 2021
Blackstone Mortgage Trust recently released its first-quarter financial results for 2021. Here are some of its highlights:
- BXMT finalized $1.7 billion in new loans in the first quarter, exceeding total originations for 2020 and driving portfolio growth of approximately $700 million to a record $18.7 billion at quarter's end
- $0.54 GAAP earnings per share and $0.59 Distributable Earnings per share in the first quarter; $0.62 dividend per share paid
- $1.7 billion of originations focused on life sciences, multifamily, and industrial
- Credit performance has been consistently solid, with 100% interest collection in the first quarter
- With market-leading financing executions, BXMT continues to diversify and optimize its balance sheet
- Closed $1.3 billion in accretive credit facility financing with a variety of counterparties and currencies on progressively favorable terms
- With 98% of loans performing and 100% interest collected when due, the portfolio credit remains robust.
American Finance Trust (AFIN)
American Finance Trust, Inc (AFIN) is a publicly traded REIT focused on acquiring and managing a diversified portfolio consisting of service-oriented and traditional retail and distribution-related commercial real estate in the US.
Some of AFIN's top tenants include:
- Home Depot
- Dollar General
American Finance Trust reported in January 2021 that it had purchased 35 properties in the fourth quarter for $61.3 million. For the full year of 2020, American Finance paid $218.3 million for 107 properties.
AFIN is an excellent stock for investors searching for a low-risk investment with a high dividend return.
AFIN Stock and Dividend News
AFIN used to pay its dividend monthly but changed it to quarterly, with a current yield of 10.10%. In January 2021, AFIN declared a $0.2125 per share quarterly dividend at an annualized rate of $0.85. Previously, the REIT paid a $0.070833 monthly dividend, which amounted to $0.212499 per quarter.
AFIN stock is currently trading at $8.42 as of June 24, 2021.
American Finance Trust First Quarter Financial Results 2021
AFIN recently released its first-quarter results for 2021. Here are some of their highlights:
- Revenue increased by 6.2% to $79.2 million in the first quarter of 2020, up from $74.6 million in the previous quarter.
- In the first quarter of 2020, the net loss attributable to common stockholders was $9.4 million, compared to $9.2 million in quarter one of 2019.
- $22.6 million in Funds from Operations ("FFO"), or $0.21 per diluted share, compared to $23.7 million, or $0.22 per diluted share, in the first quarter of 2020
- $23.0 million in dividends, or $0.21 per share
- In the first quarter of 2021, they collected roughly 100% of the original cash rent, including 100% in the single-tenant portfolio, 99% in the multi-tenant portfolio, and 100% among the top 20 tenants.
- Contractually embedded rent increase is provided via annual rent escalators with a weighted average of 1.3% per year.
Omega Healthcare Investors (OHI)
Omega Healthcare Investors is a triple-net equity REIT that provides finance and capital to Skilled Nursing Facility (SNF) and Assisted Living Facility (ALF) owners. With a $1.45 billion unsecured credit facility and proven access to the world's foremost public equity and debt markets, they've partnered with 70 of the most future-focused, growth-oriented operators in the US and UK, accelerating their expansion initiatives.
Omega rated 2nd among healthcare REITs with a ten-year total shareholder return of 232%, and 26th overall with a total shareholder return of 26% through 2020. Omega's total shareholder return of 122% beat the RMS's return of 122% during ten years.
Omega was among the top thirty of all REITs in terms of 10-year total shareholder return for the eleventh consecutive year. Since 2003, they have increased their yearly dividend every year.
Omega's Portfolio and Acquisitions
Omega has a diversified portfolio, consisting of the following as of March 31, 2021:
- 950+ operating healthcare facilities in 42 states in the US and UK
- 70 third-party operators, with $10.2 billion in gross real estate investments
- The portfolio consists of approximately 22% Senior Housing Facilities and 78% SNFs
Omega paid $12.1 million to an unaffiliated third party in March 2020 for two care home facilities (equivalent to assisted living facilities in the United States) in the United Kingdom. The two 74-bed facilities were added to an existing operator's master lease with an initial annual cash return of 8% and yearly escalators of 2.5%.
Omega paid $7.0 million to an unaffiliated third party in January 2020 to acquire one skilled nursing facility in Indiana. With an initial annual cash return of 9.5% and 2.5% yearly escalators, the 130-bed facility was then added to an existing operator's master lease.
Omega's goal is to consistently increase returns to its investors while also serving as a capital partner to their operators, allowing them to focus on providing state-of-the-art facilities and the highest level of care for their resident patients.
OHI Stock and Dividend News
Omega pays a $2.68 per share yearly dividend, giving a dividend yield of 7.32%, with three-year dividend growth of 5.51%. The most recent quarterly dividend payment from OHI was made in May 2021 to shareholders of record on that day. OHI has increased its dividend for the past year and is raising it by an average of 1.80% yearly. Omega Healthcare Investors pays a dividend of 82.97% of its earnings.
OHI stock is currently trading at $36.47 as of June 24, 2021.
Omega Healthcare Investors First Quarter Financial Results 2021
OHI recently released its financial results for the first quarter of 2021. Here are some of its highlights:
- They collected over 99% of contractual rent and mortgage payments
- Completed new acquisitions worth $595 million
- OHI sold 24 facilities for $188 million in cash, netting a profit of $100 million
- $17 million was spent on capital renovations and ongoing building projects
- On common stock, OHI paid a quarterly cash dividend of $0.67 per share
- For the first quarter of 2021, Omega earned $164.4 million, or $0.69 per common share, on revenues of $273.8 million. For quarter one of 2020, net income was $92.3 million, or $0.39 per common share, on revenues of $253.0 million
- Non-cash revenue of $12.1 million, non-recurring revenue of $5.0 million, real estate tax and ground rents of $2.9 million, and a $2.7 million write-off of non-cash straight-line revenue totaling $273.8 million in the first quarter of 2021.
Quality dividend stocks can be a fundamental component of a retirement portfolio's current income and total return. A well-constructed dividend stock basket may give investors secure current income, income growth, and long-term capital appreciation, allowing them to stay the course and build a retirement portfolio that will last a lifetime.
Investing in high-dividend REITs has a higher level of risk, and the ones that pay the highest dividends are frequently the first to cut them when times become challenging. It's critical to conduct your research to ensure that your considering REITs are within your risk tolerance.
However, if you're looking for REITs that yield 7% or more, then you should consider one of the three REITs discussed.