By Matt Frankel, Motley Fool Financials

7 High-Dividend REIT Stocks

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1. Realty Income Corp. (NYSE:O)

• Share Price: $52.05

• Dividend Yield: 4.37%

• Frequency: Monthly

• Type of real estate

investments: Retail

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April 8, 2015

• Realty Income owns more than 4,300 retail properties

• 98.4% occupancy rate, which has never fallen below

96%

• Tenants sign long-term leases (15 years or more) with

rent increases built in, and pay variable expenses such

as taxes, insurance, and maintenance

• Since going public in 1994, Realty Income has increased

its dividend 80 times, by an average of 4.7% per year

• Average annual total returns of 17.1% over the past 20

years

• Largest tenants are Walgreens, FedEx, and Dollar

General

April 8, 2015

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Realty Income Corp (NYSE: O)

2. American Campus Communities (NYSE: ACC)

• Share Price: $43.36

• Dividend Yield: 3.51%

• Frequency: Quarterly

• Type of real estate

investments: Student

housing

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April 8, 2015

www.audio-luci-store.it via flickr

• American Campus Communities builds and operates

student housing communities

– Currently has 163 properties in 74 university markets

• Target market is 4-year public institutions with enrollment

greater than 15,000

– 3 largest markets (by income) are Arizona State

University, University of Texas at Austin, and Texas

A&M

• Average occupancy rate of 97.7% and average rental

growth of 2.4% annually

• Seeks growth through acquisitions, as well as through

development of new properties

April 8, 2015

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American Campus Communities (NYSE: ACC)

3. Chambers Street Properties (NYSE: CSG)

• Share Price: $7.92

• Dividend Yield: 6.44%

• Frequency: Monthly

• Type of real estate

investments: Industrial

and office properties

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April 8, 2015

Source: wikipedia

• Chambers Street’s portfolio consists of 42% industrial and

58% office properties

– 128 total properties with nearly 38 million rentable

square feet

– The portfolio is geographically diverse, as well as

diversified across different industries

• 98.3% occupancy rate

• Has been focused on debt reduction and selective

acquisitions of new industrial properties

• Most tenants are on “triple-net” leases, which means they

pay taxes, insurance, and maintenance as part of the rent

• Top tenants are Amazon.com, Barclays, and Raytheon

April 8, 2015

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Chambers Street Properties (NYSE: CSG)

4. Annaly Capital Management (NYSE: NLY)

• Share Price: $10.45

• Dividend

Yield:11.48%

• Frequency: Quarterly

• Type of real estate

investments: Agency

Mortgages

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April 8, 2015

Source: 401kcalculator.org

• Annaly invests in high-quality, agency guaranteed mortgages

– Most of the portfolio (95%) consists of fixed-rate

mortgages

• In order to produce high returns, Annaly uses leverage

(borrowed money) to finance its investments

– The company’s profit is the “spread” between the interest

rate it pays and the interest rate is collects from the

mortgages

– Current leverage ratio is 5.4:1

• The downside is that this business model is very vulnerable to

interest rate spikes, since that can cause the spread to narrow

• Shares currently trade for a 20% discount to book value

April 8, 2015

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Annaly Capital Management (NYSE: NLY)

5. PennyMac Mortgage Investment

Trust (NYSE: PMT)• Share Price: $21.34

• Dividend Yield:

11.43%

• Frequency: Quarterly

• Type of real estate

investments:

Distressed mortgages

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April 8, 2015

• Unlike most mortgage REITs, PennyMac primarily

invests in distressed mortgage loans

• Since distressed mortgages can be bought at a discount

to underlying property values and pay higher yields,

PennyMac can produce high dividends without much

leverage

– Current leverage ratio is 2:1, unlike most mortgage

REITs which use 5:1 or higher

• PennyMac has increased its dividend consistently since

going public

– Dividend has risen 7% over the past two years

April 8, 2015

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PennyMac Mortgage Investment

Trust (NYSE: PMT)

6. Health Care REIT Inc (NYSE: HCN)

• Share Price: $77.83

• Dividend Yield: 4.24%

• Frequency: Quarterly

• Type of real estate

investments: Health

care properties

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April 8, 2015

Photo: pixabay

• Health Care REIT was the first of its kind, founded in

1970

• Currently owns more than 1,300 properties with an

enterprise value of $37 billion

– Properties include senior housing, LTC facilities,

medical offices, and more

• Great growth opportunity, as the 75+ population is

projected to grow more than five times as fast as the

overall U.S. population

• Strong balance sheet, good access to capital

• 16.1% average annual return since inception

April 8, 2015

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Health Care REIT Inc (NYSE: HCP)

7. Digital Realty Trust (NYSE: DLR)

• Share Price: $65.84

• Dividend Yield: 5.16%

• Frequency: Quarterly

• Type of real estate

investments: Data

centers

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April 8, 2015

Photo: wikipedia

• Digital Realty Trust owns data centers in America,

Europe, Asia, and Australia

• The company maintains a conservative capital structure,

and has investment-grade credit ratings

• Dividend has increased at an average rate of 14% per

year

• Diversified group of high-quality tenants

– No single tenant represents more than 7.2% of

revenue

– Major tenants include CenturyLink, IBM, Facebook,

AT&T, and Morgan Stanley

April 8, 2015

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Digital Realty Trust (NYSE: DLR)

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