Buy These 3 High-Yield REITs Raising Dividends in December


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DIVIDEND INVESTING, HIGH-YIELD INVESTING, REAL ESTATE INVESTMENT TRUSTS (REITS)
 

We are almost at the end of another year, and I hope your dividend income stream has marched steadily higher throughout 2018.

Tracking your dividend income and managing your portfolio to grow that income makes it easier to go through market corrections like we saw in October.

One bit of assistance I like to provide is to list those real estate investment trusts (REITs) that should announce higher dividend rates in the upcoming months. This knowledge can give you a jump on the rest of investing public, which will be surprised when the positive news is actually announced.

I maintain a database of about 130 REITs. With it I track current yields, dividend growth rates and when these companies usually announced new dividend rates. Most REITs announce a new dividend rate once a year, and then pay that rate for the next four quarters.

Currently about 85 REITs in my database have recent and ongoing histories of dividend growth. Out of that group, higher dividend announcements will happen during almost every month of the year. In the face of market volatility, REIT values have held up reasonably well in 2018.

Related: Buy This 8.4% REIT That’s Raised Dividends Every Quarter

Dividend increases are the best defense against higher market interest rates. Higher dividend announcements may be the catalyst to higher share prices for individual REIT shares.

My list shows several companies that historically announce higher dividends in December and should do so again this year. Investors will start earning the higher payouts in the new year.

Remember, you want to buy shares before the dividend announcement to get the benefit of a share price bump caused by the positive news event.

Here is the list of REITs to consider:

Ventas, Inc. (NYSE: VTR) is a large-cap REIT that owns a portfolio of properties leased by companies providing the full range of healthcare services. Ventas has done very well for investors, growing its dividend at a compounding 8% annual rate since 2001.

For the last three years, revenue and cash flow growth has been a challenge across all healthcare REITs. Ventas has sold some assets and used the proceeds to pay down debt. As a result, the company’s balance sheet is stronger, but normalized FFO per share for the first three quarters of 2018 were down 5% compared to the same period in 2017.

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