The Best REIT Stocks to Invest $1,000 in Right Now

2 months ago 25

Justin Pope, The Motley Fool

Sat, Apr 26, 2025, 3:50 PM 5 min read

But astir idiosyncratic investors deficiency the connections, knowledge, and fiscal resources to put successful commercialized properties. That's wherever real property concern trusts (REITs) travel in. These publically traded companies get and lease existent estate. They administer astatine slightest 90% of their taxable income to shareholders arsenic nonqualified dividends.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now. Continue »

It makes REITs fantastic choices for dividend investors. Here are 3 world-class REITs covering 3 antithetic types of existent estate. Their beardown financials, resilient dividend history, and charismatic valuations marque them the champion REITs to put $1,000 successful today.

Many dividend investors cognize Realty Income (NYSE: O) arsenic the "monthly dividend company" due to the fact that it pays retired monthly dividends alternatively than the quarterly docket astir companies follow. Realty Income owns and manages a portfolio of implicit 15,000 properties crossed the United States and Europe, specializing successful nett leases connected single-tenant retail properties, including restaurants, stores, gyms, pharmacies, and different retail establishments.

High involvement rates successful caller years person bogged down Realty Income's stock, driving its dividend output to astir 5.5%, adjacent decennary highs. Don't worry, though; the dividend payout ratio is lone 76% of Realty Income's 2024 funds from operations (FFO), and the institution has paid and raised its dividend for 32 consecutive years.

The concern has grown astatine a mid-single-digit gait implicit the agelong term. If that continues, Realty Income could beryllium a sneakily productive semipermanent holding for those consenting to reinvest the dividends implicit time. The banal trades astatine 14 times its FFO, a bully worth for 1 of the market's astir dependable REITs.

California has a monolithic system and concern base. If it were a country, California would person the world's 11th-largest economy. Rexford Industrial Realty (NYSE: REXR) owns and manages a portfolio of implicit 400 concern properties concentrated successful Southern California. Its properties location manufacturing, warehousing, distribution, and probe and improvement for tenants crossed dozens of industries.

Rexford Industrial Realty's dividend output has reached 5.3%, its highest connected record. Abnormally precocious yields tin beryllium a reddish flag, but this appears much similar an opportunity, arsenic Rexford Industrial Realty's FFO comfortably covers the dividend astatine a 73% payout ratio. The institution has managed to rise its dividend each twelvemonth since its archetypal nationalist offering successful 2014, including during the COVID-19 pandemic.