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4 High-Yield REITs To Buy In a Low-Yield Bond Environment
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Last week saw stocks recover from a major sell-off after the United Kingdom’s decision to leave the European Union, but the Brexit is still affecting the financial world. The bond market is seeing historically low yields, which is driving investors towards other investment opportunities. REIT’s provide investors with an opportunity of income by paying out almost all their earnings as dividends.
These 4 REITs are all highly ranked by Zacks, and hold high dividend yields that could provide much better returns than the yields on long-term bonds:
As a real estate investment trust, CIO focuses on acquiring, owning, and operating office properties in the southern and western United States. CIO currently holds a Zacks Rank #2 (Buy), and offers a significant dividend yield of 7.14%.
CIO also has a B for its Growth Style Score, and has projected sales growth of 24.44% for the current year. There have been 2 analysts that have raised their current year EPS estimates in the last 60 days for the company, pushing the estimate from $0.14 up to the current level of $0.19.
Apple Hospitality REIT Inc. is a real estate investment trust with a portfolio consisting of hotels, guest rooms, and resorts. The trust primarily operates in the US, and is headquartered in Richmond, VA. APLE is currently a Zacks Rank #1 (Strong Buy), and offers a dividend yield of 6.35%.
The company has seen a solid amount upward EPS estimate revision activity as of late, with 4 analysts raising their estimates in the last 60 days. This activity has pushed the current year’s estimate from $1.73 up to $1.77. As it stands, APLE is projected to see 11.64% EPS growth this year.
Sotherly Hotels Inc. is a real estate investment trust focused on the acquisition, renovation, upbranding, and repositioning of upscale and upper-upscale full-service hotels primarily located in the Mid-Atlantic and Southern United States. SOHO is currently a Zacks Rank #1 (Strong Buy) and offers a dividend yield of 6.38%.
SOHO holds an A for its Value Style Score, which can be attributed to its high dividend yield, a low PE ratio of 4.48, an earnings yield of 22.34%, and a price to sales ratio of .55. The company also has solid growth prospects, with projected EPS growth of 26%.
W.P. Carey Inc. is a real estate investment trust engaged in providing long-term sale-leaseback and build-to-suit financing for companies. The firm primarily invests in commercial properties that are generally triple-net leased to single corporate tenants including office, warehouse, industrial, retail, hotel, and self-storage properties.
WPC is currently holds a Zacks Rank #1 (Strong Buy), and offers a dividend yield of 5.66%. Its high Zacks Rank can be partly attributed to the great deal of upward revision activity it has seen as of late, with 4 analysts have raised their estimates in the last 60 days. This activity has pushed the current year EPS estimate from $4.35 much higher to the current level of $4.79. It should also be noted that the firm has a history of beating on earnings, as it has done so in each of its last 4 quarters by an average of 20.47%.
Bottom Line
With bond-yields hitting all-time lows after the United Kingdom’s decision to leave the European Union, investors are seeking other vehicles to provide returns and higher yields. REIT’s can be a solid option for those investors seeking such an opportunity, especially the 4 listed above. With top Zacks Ranks, high dividend yields, and other strong attributes, these REITs could provide the returns and income that many investors would love to see.
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4 High-Yield REITs To Buy In a Low-Yield Bond Environment
Last week saw stocks recover from a major sell-off after the United Kingdom’s decision to leave the European Union, but the Brexit is still affecting the financial world. The bond market is seeing historically low yields, which is driving investors towards other investment opportunities. REIT’s provide investors with an opportunity of income by paying out almost all their earnings as dividends.
These 4 REITs are all highly ranked by Zacks, and hold high dividend yields that could provide much better returns than the yields on long-term bonds:
City Office REIT (CIO - Free Report)
As a real estate investment trust, CIO focuses on acquiring, owning, and operating office properties in the southern and western United States. CIO currently holds a Zacks Rank #2 (Buy), and offers a significant dividend yield of 7.14%.
CIO also has a B for its Growth Style Score, and has projected sales growth of 24.44% for the current year. There have been 2 analysts that have raised their current year EPS estimates in the last 60 days for the company, pushing the estimate from $0.14 up to the current level of $0.19.
Apple Hospitality REIT Inc. (APLE - Free Report)
Apple Hospitality REIT Inc. is a real estate investment trust with a portfolio consisting of hotels, guest rooms, and resorts. The trust primarily operates in the US, and is headquartered in Richmond, VA. APLE is currently a Zacks Rank #1 (Strong Buy), and offers a dividend yield of 6.35%.
The company has seen a solid amount upward EPS estimate revision activity as of late, with 4 analysts raising their estimates in the last 60 days. This activity has pushed the current year’s estimate from $1.73 up to $1.77. As it stands, APLE is projected to see 11.64% EPS growth this year.
Sotherly Hotels Inc. (SOHO - Free Report)
Sotherly Hotels Inc. is a real estate investment trust focused on the acquisition, renovation, upbranding, and repositioning of upscale and upper-upscale full-service hotels primarily located in the Mid-Atlantic and Southern United States. SOHO is currently a Zacks Rank #1 (Strong Buy) and offers a dividend yield of 6.38%.
SOHO holds an A for its Value Style Score, which can be attributed to its high dividend yield, a low PE ratio of 4.48, an earnings yield of 22.34%, and a price to sales ratio of .55. The company also has solid growth prospects, with projected EPS growth of 26%.
W.P. Carey Inc. (WPC - Free Report)
W.P. Carey Inc. is a real estate investment trust engaged in providing long-term sale-leaseback and build-to-suit financing for companies. The firm primarily invests in commercial properties that are generally triple-net leased to single corporate tenants including office, warehouse, industrial, retail, hotel, and self-storage properties.
WPC is currently holds a Zacks Rank #1 (Strong Buy), and offers a dividend yield of 5.66%. Its high Zacks Rank can be partly attributed to the great deal of upward revision activity it has seen as of late, with 4 analysts have raised their estimates in the last 60 days. This activity has pushed the current year EPS estimate from $4.35 much higher to the current level of $4.79. It should also be noted that the firm has a history of beating on earnings, as it has done so in each of its last 4 quarters by an average of 20.47%.
Bottom Line
With bond-yields hitting all-time lows after the United Kingdom’s decision to leave the European Union, investors are seeking other vehicles to provide returns and higher yields. REIT’s can be a solid option for those investors seeking such an opportunity, especially the 4 listed above. With top Zacks Ranks, high dividend yields, and other strong attributes, these REITs could provide the returns and income that many investors would love to see.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>