3 High-Yield REITs Throwing off 5%-Plus

You may want to put down the stocks and focus on real estate investment trusts. It turns out, REITs have been the way to go over the last decade or so. According to J.P. Morgan Asset Management, REITs have been “the best-performing asset class in the market in the past 15 years” … by a wide margin. A report by the investment manager showed that the firms that own apartment buildings, office plazas, shopping malls and other properties managed to gain an average of around 12% a year since 2000. Large-cap stocks — as measured by the S&P 500 Index — only managed to return around 4.1%.

Driving that performance has been the focus of REITs toward maximizing shareholder value through big-time dividends. In exchange for certain tax benefits, REITs are required to kick out the majority of their cash flow’s back to investors as cash payouts. That produces dividend yields in the 4% to 7% on average. The combination of high yields and investor demand for them has helped the asset class kill it over the long haul. With that in mind, here are three REITs that have a great combination of high-yield and capital gains potential: Stag Industrial Inc. (STAG), HCP, Inc. (HCP) and Vereit Inc (VER).

Source: InvestorPlace

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