3 Top REIT Stocks to Buy in November
Real estate investment trusts (REITs) are designed to pass income on to investors in a tax-advantageous manner. But all REITs are not the same, not by a long shot. Those in search of a high yield will want to look at W. P. Carey (NYSE: WPC) in November. Dividend growth types should dig into Rexford Industrial Realty (NYSE: REXR). And for investors who think dividend reliability is king, then Federal Realty Investment Trust (NYSE: FRT) could be the right pick. Here's a quick rundown of each of these attractive dividend-paying REITs.
There's no way around this one, W. P. Carey cut its dividend at the start of 2024. That decision came about because the company chose to exit the office sector, which, prior to the exit, made up 16% of its rent roll. That's just too much rent to lose without having to cut the dividend. However, the office sector is in a deep downturn and the decision was probably the right move for the REIT and shareholders over the long term. Still, investors weren't pleased and W. P. Carey needs to earn back Wall Street's trust.
That's a big part of the reason why the REIT is offering an attractive 6.3% dividend yield. It is important to recognize that the dividend got right back to the quarterly increase cadence that existed before the cut, which suggests that the cut was really just a reset. That makes sense when you consider the big picture here, which was a choice to exit just one of multiple property sectors. It still operates in the warehouse, industrial, and retail property types and in multiple geographic regions (predominantly the United States and Europe). If you are willing to give management the benefit of the doubt, you can collect a lofty yield from one of the most diversified REITs in the market. Given enough time, it seems likely that W. P. Carey will turn its business around and prove that this hard decision was a wise one.
Source Fool.com
