High-Yield REIT Stock Pays 8%, Strong Growth, Good Dividend Coverage, Pays Monthly

Smaller REITs have a competitive advantage over bigger REITs: They can much more easily grow their valuations through smart and value-enhancing acquisitions. Bigger REITs often already have exhausted this option while smaller REITs have much more growth value for their shareholders. Big REITs, on the other hand, are usually longer in business, have a much longer dividend history, and, therefore, a lower risk for investors. This company is a bet on FFO growth as much as it is an income play. The REIT has largely grown through acquisitions, which have fueled the company's core FFO. Its dividend coverage has been quite good. Shares sell for ~12.5x core FFO, and the REIT expects to fully earn its dividend in 2017. An investment in the stock yields 7.80 percent.

Independence Realty Trust, Inc. (NYSEMKT:IRT) is a fast-growing real estate investment trust that does not get the coverage or attention it deserves. The REIT is aggressively buying properties to expand its portfolio, and has increased its core funds from operations at a really fast pace in the last several years. Independence Realty Trust is a bet on continued FFO growth as much as it is an income vehicle that pays shareholders a handsome 8 percent yield.

Source: Seeking Alpha

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