10 Super High Dividend REITs With Yields Up To 20.2%

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10 Super High Dividend REITs With Yields Up To 20.2%


Updated on January 25th, 2022 by Bob Ciura

Investors looking to generate higher levels of income from their investment portfolios should take a look at Real Estate Investment Trusts, or REITs. These are companies that own real estate properties and lease them to tenants or invest in real estate backed loans, both of which generate a steady stream of income.

The bulk of their income is then passed on to shareholders, through dividends. You can see all 208 REITs here.

You can download our full list of REITs, along with important metrics such as dividend yields and market capitalizations, by clicking on the link below:

 

The beauty of REITs, for income investors, is that they are required to distribute 90% of their taxable income to shareholders annually, in the form of dividends. In return, REITs typically do not pay corporate taxes.

As a result, many of the 200+ REITs we track offer high dividend yields of 5%+.

Bonus: Listen to our interview with Brad Thomas on The Sure Investing Podcast about intelligent REIT investing in the below video.

 

But not all high-yielding stocks are automatic buys. Investors should carefully assess the fundamentals to ensure the high yields are sustainable. This article will discuss 10 of the highest-yielding REITs around with market capitalizations above $1 billion.

Note that while the securities in this article have very high yields, a high yield alone does not make for a solid investment. Dividend safety, valuation, management, balance sheet health, and growth are all very important factors as well.

We urge investors to use the below analysis as informative, but to do significant due diligence before buying into any security – and especially high yield securities. Many (but not all) high yield securities have significant risk of a dividend reduction and/or deteriorating business results.

Table of Contents

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High-Yield REIT No. 10: Dynex Capital (DX)

Dynex Capital invests in mortgagebacked securities (MBS) on a leveraged basis in the United States. It invests in agency and nonagency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interestonly securities.

Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. governmentsponsored entity, such as Fannie Mae and Freddie Mac. NonAgency MBS have no such guaranty of payment.

Click here to download our most recent Sure Analysis report on Dynex Capital (preview of page 1 of 3 shown below):

High-Yield REIT No. 9: American Finance Trust (AFIN)

American Finance Trust is an externally managed real estate investment trust (REIT), focusing on acquiring and managing a diversified portfolio of primarily serviceoriented and traditional retail and distributionrelated commercial properties located primarily in the United States.

The trust’s assets consist primarily of 935 singletenant properties net leased to investmentgrade and other creditworthy tenants and a portfolio of 33 multitenant retail properties consisting primarily of power and lifestyle centers.

Its 968 properties comprise 20.1 million rentable square feet, which were 93.2% leased at the time of its latest filing.

Click here to download our most recent Sure Analysis report on AFIN (preview of page 1 of 3 shown below):

High-Yield REIT No. 8: Ellington Financial (EFC)

Ellington Financial Inc. acquires and manages mortgage, consumer, corporate, and other related financial assets in the United States. The company acquires and manages residential mortgagebacked securities (RMBS) backed by prime jumbo, AltA, manufactured housing, and subprime residential mortgage loans.

Additionally, it manages RMBS, for which the U.S. government guarantees the principal and interest payments. It also provides collateralized loan obligations, mortgagerelated and nonmortgagerelated derivatives, equity investments in mortgage originators and other strategic investments.

Click here to download our most recent Sure Analysis report on EFC (preview of page 1 of 3 shown below):

 

High-Yield REIT No. 7: Apollo Commercial Real Estate Finance (ARI)

Apollo Commercial Real Estate Finance, Inc. was founded in 2009. It is a real estate investment trust (REIT) that invests in debt securities including senior mortgages, mezzanine loans, and other commercial real estate-related debt. Apollo’s investments, placed in the U.S. and Europe, are collateralized by the underlying real estate properties.

Apollo Commercial Real Estate Finance holds a multi-billion dollar commercial real estate portfolio consisting of Hotels, Office Properties, Urban Pre-development, Residential-for-sale inventory, and Residential-for-sale construction. The company’s portfolio is split up between Manhattan, New York, the United Kingdom, and the remainder of the U.S.

Click here to download our most recent Sure Analysis report on ARI (preview of page 1 of 3 shown below):

High-Yield REIT No. 6: PennyMac Mortgage Investment Trust (PMT)

PennyMac Mortgage Investment Trust is a specialty REIT that invests in residential mortgage loans and mortgage-related assets. PMT is managed by PNMAC Capital Management, LLC, a subsidiary of PennyMac Financial Services, Inc. (PFSI).

PMT believes it will generate long-term growth alongside a large (and growing) addressable market in its core industry.

Click here to download our most recent Sure Analysis report on PMT (preview of page 1 of 3 shown below):

High-Yield REIT No. 5: Global Net Lease (GNL)

Global Net Lease is a REIT investing in commercial properties in the U.S and Europe, with an emphasis on sale-leaseback transactions. The company owns over 300 properties.

Office properties are its largest sector, with industrial & distribution making up a very large portion of the portfolio as well, while retail rounds out the remainder.

Click here to download our most recent Sure Analysis report on GNL (preview of page 1 of 3 shown below):

High-Yield REIT No. 4: Annally Capital Management (NLY)

Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets. The trust invests in various types of agency mortgagebacked securities, nonagency residential mortgage assets, and residential mortgage loans.

It also originates and invests in commercial mortgage loans, securities, and other commercial real estate investments. Annaly provides financing to private equitybacked middle market businesses and operates as a brokerdealer.

Click here to download our most recent Sure Analysis report on NLY (preview of page 1 of 3 shown below):

High-Yield REIT No. 3: Two Harbors Investment Corp. (TWO)

Two Harbors Investment Corp. focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights, and other financial assets in the United States.

Its target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, and hybrid adjustable-rate mortgage (ARMs); non-agency securities collateralized by prime mortgage loans, Alt-A mortgage loans, pay-option ARM loans, and subprime mortgage loans; and other assets, such as financial and mortgage-related assets, as well as residential mortgage loans and non-hedging transactions.

Two Harbors Investment Corp. was incorporated in 2009 and is headquartered in New York, New York.

Click here to download our most recent Sure Analysis report on TWO (preview of page 1 of 3 shown below):

High-Yield REIT No. 2: ARMOUR Residential REIT (ARR)

ARMOUR Residential (ARR) is a mortgage REIT that was formed in 2008. The trust invests primarily in residential mortgagebacked securities that are guaranteed or issued by a United States government entity including Fannie Mae, Freddie Mac and Ginnie Mae. ARMOUR generates about $97 million in net revenues.

Click here to download our most recent Sure Analysis report on ARR (preview of page 1 of 3 shown below):

High-Yield REIT No. 1: Orchid Island Capital (ORC)

Orchid Island Capital, Inc. is a REIT operating in the mortgage industry. Mortgage REITs differ from most other REITs.

For example, traditional REITs typically own a portfolio of physical real estate, which they lease to tenants to collect rental income. Mortgage REITs are purely financial entities, and Orchid Island does not own any physical properties.

Instead, it is an externally managed REIT (by Bimini Advisors LLC) that invests in residential mortgagebacked securities (RMBS), either passthrough or structured agency RMBSs, which are financial instruments that collect cash flow based on residential loans such as mortgages, including subprime, and homeequity loans.

Click here to download our most recent Sure Analysis report on ORC (preview of page 1 of 3 shown below):

Final Thoughts

REITs have significant appeal for income investors, due to their high yields. These 10 extreme high-yielding REITs are especially attractive on the surface, although investors should be aware that abnormally high yields are often accompanied by elevated risks.

You can see more high-quality dividend stocks in the following Sure Dividend databases, each based on long streaks of steadily rising dividend payments:

Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.


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