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7 Best Penny Stock REITs to Buy with High Dividend Yields

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Are you seeking both growth and income? Look no further than these bargain real estate plays.

By Alex Sirois Jun 30, 2021, 12:02 pm EDT

penny stock REITs - 7 Best Penny Stock REITs to Buy with High Dividend Yields

Real estate investment trusts (REITs) are a very interesting investment vehicle. Basically, REITs are real estate firms which purchase, own and operate various properties. They produce income in the form of rent and also come in several different flavors. Broadly, REITs can be divided into one of two categories — residential or commercial. But there’s another category I’d like to focus on for this article: penny stock REITs.

Typically, the average REIT investor is looking for dividend payouts as a form of income. Moreover, a typical investor doesn’t expect price appreciation from REIT stocks. However, penny stock investors do. That’s what makes the niche of penny stock REITs so interesting —  they’re a “best of both worlds” play. 

The seven penny stock REITs I’ve listed below all trade for under $5 and have the ability to move up quickly. At the same time, though, they all bear dividends. That makes any fluctuations much easier to justify. 

  • MFA Financial (NYSE:MFA)
  • Invesco Mortgage Capital (NYSE:IVR)
  • Lument Finance Trust (NYSE:LFT)
  • Western Asset Mortgage Capital (NYSE:WMC)
  • New York Mortgage Trust (NASDAQ:NYMT)
  • AG Mortgage Investment Trust (NYSE:MITT)
  • Presidio Property Trust (NASDAQ:SQFT)

Penny Stock REITs to Buy: MFA Financial (MFA)

a wooden house shape holds 3 bags of cash representing reits to buy

Source: Shutterstock

First up on this list of penny stock REITs, MFA Financial invests in mortgage-backed securities and residential whole loans. What’s more, although most REITs don’t generally appreciate in price quickly, MFA has been doing exactly that. Year-to-date (YTD), MFA stock has steadily moved up some 18% from $3.76 to $4.60 today. Even the most ardent growth investors have to admit that kind of growth is attractive. 

On top of this, MFA Financial also announced a 10 cent dividend payable on Jul. 30. That works out to an 8.7% yield on an annualized basis, based on the current price. Add that return to the price appreciation and you can see why MFA stock is interesting right now.

Plus, investors could possibly expect that dividend to move toward 20 cents if history holds any clues. The company had been paying a 20 cent quarterly dividend from 2013 up until the pandemic disrupted operations. 

From a price appreciation perspective, there is also reason to be optimistic on the shares. Prior to the pandemic, MFA had been trading in the $7 to $8 range for several years. Now, it is steady and could continue to rise, retracing those losses from its current sub-$5 price.

Finally, I think there’s reason to like this REIT based on the credit profiles of its loan asset base as well. The weighted average credit score backing its assets is in the 725 range, meaning the likelihood of default is relatively low. 

Invesco Mortgage Capital (IVR)

tiny house figures atop letter blocks spelling out REIT, representing reits to buy. stock predictions

Source: Shutterstock

If Invesco Mortgage Capital shares ever increase to their pre-pandemic levels, current investors will be beaming from ear to ear. That’s because IVR stock essentially traded on a plateau of around $16 between late 2016 and the onset of the pandemic.

Right now, though, the price of this pick of the penny stock REITs sits in the $3 to $4 range. In fact, based on analyst expectations, it looks like IVR shares may sit where they stand for some time. However, it would also be fair to say that IVR has more potential upside than MFA stock does.

In any case, Invesco Mortgage Capital’s dividend should serve well to buffer the price volatility. Today, the dividend stands at 9 cents and yields 9.18% according to Seeking Alpha. Prior to the pandemic, income investors could have depended on IVR stock to pay in the range of 40 to 50 cents on a quarterly basis.

Penny Stock REITs to Buy: Lument Finance Trust (LFT)

a person in a suit holds a tiny house to represent reits to buy

Source: Shutterstock

Lument Finance Trust is the next pick of the penny stock REITs on this list, deriving its value from commercial real estate debt primarily in the middle-market family sector. Unlike other names on this list, LFT stock’s dividend also remained unaffected by the pandemic. In fact, the company changed its name in late 2020, announced a dividend increase and has since continued its strong trajectory. 

Today, Lument Finance Trust is already trading above its pre-pandemic price levels. That is partially due to the fact that its dividends are higher than they’ve been since late 2015. Additionally, it seems that the rebranding combined with other factors is working in the company’s favor. Investors are happy. 

One of the primary concerns related to investing in REITs currently is that renters may not be able to pay. However, 100% of its commercial real estate portfolio was current as of Mar. 31, its latest earnings filing date (Page 4). Further, Lument didn’t grant “a single forbearance nor […] experienced a single loan default” in what it refers to as the “COVID era.”

Based on analyst projections, LFT stock should plateau around $4.50, which is where it currently stands. Yet, based on the trajectory of its price chart YTD, there is reason to believe it could exceed those levels. 

Western Asset Mortgage Capital (WMC)

Image of a man holding a key chain with a key and house attached to the key ring over a office desk in the background

Source: Shutterstock

Holders of WMC stock could count on a very stable dividend from the period between June 2016 up until the pandemic. In fact, the dividend for this pick of the penny stock REITs was as stable as they come. For each and every quarter between those two dates, investors received 31 cents. That means shareholders received $1.24 per share each year. During that time, WMC stock traded around the $10 level — an income investor’s dream by and large. 

Of course, the pandemic shook up this scenario and Western Asset Mortgage Capital skipped its dividend throughout the first half of 2020. However, it began paying the dividend again in October 2020 and is now back on a quarterly payout schedule. 

For 2021, WMC stock is now trending upward and consolidating at higher and higher levels as the recovery continues. Formerly $10 per share, prices are now closer to $3.20 while the dividend is 6 cents per quarter. That may not sound so attractive. However, an investment now is a bet that both the stock price and the dividend payouts appreciate with some regularity and approach their former levels.

Currently, Wall Street essentially has no strong feeling about where WMC stock is heading. According to the Wall Street Journal, two analysts currently shade it toward the underweight category. However, WMC has beaten the earnings consensus in each of its past four quarters. That indicates that analysts continue to underestimate the company and its ability to rise. 

Penny Stock REITs to Buy: New York Mortgage Trust (NYMT)

hand of person in a suit dangling keys with a house symbol on the ring. Windows overlooking city skyline in background.

Source: ImageFlow/

Next up on this list of penny stock REITs is New York Mortgage Trust, a REIT that’s focused onmortgage-related and residential housing-related assets. Moreover, like the vast majority of REITs, NYMT’s shareholder focus is on stable distributions over the longer term. 

Most of the other stocks on this list are drawing trepidation from Wall Street right now. Basically, analysts are somewhat fearful of making predictions about the direction of real estate. Therefore, many of these REITs currently have “hold” ratings. But the situation is somewhat better in the case of NYMT stock. Today, it has a consensus overweight rating with a high price target of $6 from the 10 analysts covering it. If nothing else, that should comfort investors a bit. 

On top of this, NYMT stock has been appreciating in price steadily throughout 2021, marching upward from about $3.60 to around $4.40 today. That 23% appreciation is not common in the REIT world. Although it’s clearly a consequence of the times, it’s also great for investors.

New York Mortgage Trust’s latest dividend was 10 cents and its dividend yield is currently 9.03% according to Seeking Alpha. In the past, the dividend has been closer to between 20 and 30 cents. Investors may hope for a return to those levels in 2022.

AG Mortgage Investment Trust (MITT)

image of small toy homes with a red arrow pointing up to represent reits to buy

Source: Shutterstock

Like many of the other penny stock REITs on this list, AG Mortgage Investment Trust could be trusted for a couple of things pre-pandemic; a steady dividend and steady share price. Shares of MITT stock were very predictable between mid-2016 and early 2020, mostly staying between $15 and $17. The same goes for MITT stock’s dividends, which ranged between 45 and 50 cents without fail. 

When the pandemic hit, however, AG Mortgage suspended its dividend and the share price drastically decreased. MITT reinstated its dividend at the very end of 2020, though, paying 6 cents. That is a far cry from the dividend that investors had grown accustomed to.

Today, though, the most recent dividend was a somewhat encouraging 7 cents. Altogether, MITT has recovered a bit in 2021. Now it intends to “streamline […] [its] business model to focus on residential whole loan investments, ultimately positioning the company as a pure play residential credit company.” Investors searching for this particular niche of the REIT market likely won’t find a cheaper dividend-bearing stock. 

Penny Stock REITs to Buy: Presidio Property Trust (SQFT)

Real estate investment trust (REIT) on a black notebook on an office desk.

Source: Shutterstock

Last up on this list of penny stock REITs, Presidio Property Trust is unique in that it doesn’t have a long track record as a publicly traded entity. In fact, SQFT stock began trading in October 2020 and is focused on commercial operations in office and industrial properties. In that short time, the company has paid three dividends, all of which have been sequentially bigger. Those dividends were 10 cents, 10.1 cents and 10.2 cents respectively. 

Focused in the midwestern and western United States, Presidio’s current portfolio of commercial properties includes 12 commercial sites across Colorado, California and North Dakota. Basically, this company employs a logical strategy by choosing specific target sites in areas with low unemployment and lower cost of living. If trends hold, these factors should keep its properties in demand.

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On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

Article printed from InvestorPlace Media,

©2021 InvestorPlace Media, LLC


Hey my darlings, HAPPY MONDAY, I am soooo excited to welcome you back to the blog, as always I drop a brand new PENNY STOCKS WATCHLIST and this week we are diving into some REIT’s penny stocks that pay DIVIDENDS. Before you ask, REIT’s are REAL ESTATE INVESTMENT TRUST. Since I am dropping an ebook on some of the highest paying dividend stocks to add to your portfolio longterm figured I’ll share some Penny Stocks that pay dividends for my babes who are interested in Passive Income. Check them out, and of course, do your own due diligence, and invest in what interests you. 

 And as always I linked each stock to the company’s profile on Tradingview where you can read more about the company, it’s current news headlines.  

Check them out, again, do your own research on each and invest in what sounds good to you!  And please keep in mind trading penny stocks is risky as hell, you will lose money so please invest at your own risk.


  • Ashford Hospitality Trust (AHT)
  • Redwood Trust (RWT)
  • Western Asset Mortgage Capital (WMC)
  • New York Mortgage Trust (NYMT)
  • AG Mortgage Investment Trust (MITT)

Ashford Hospitality Trust, Inc. is a real estate investment trust, which invests in the hospitality industry. The firm’s investments include direct hotel investments, mezzanine financing through origination or acquisition, first mortgage financing through origination or acquisition, sale-leaseback transactions and other hospitality transactions. The company was founded by Montgomery Jack Bennett in May 2003 and is headquartered in Dallas, TX.

Western Asset Mortgage Capital Corp. is a real estate investment trust, which engages in managing a diversified portfolio of assets. It focuses on investing in, financing, and managing real estate related securities, whole loans and other financial assets. The company was founded on June 3, 2009 and is headquartered in Pasadena, CA.

AG Mortgage Investment Trust, Inc. is a real estate investment trust, which focuses on investing, acquiring, and managing a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets. The firm conducts its business through the following segments: Securities and Loans and Single-Family Rental Properties. Its portfolios include Agency RMBS, Residential Investments, Commercial Investments, and ABS. The company was founded on March 1, 2011 and is headquartered in New York, NY.

New York Mortgage Trust, Inc. is a real estate investment trust, which engages in the acquisition, investment, finance and management of mortgage-related and residential housing-related assets. Its objective is to deliver long-term stable distributions to its stockholders over changing economic conditions through a combination of net interest margin and capital gains from a diversified investment portfolio. Its investment portfolio includes multi-family credit assets, single-family credit assets, agency securities, and other mortgages. The company was founded on September 26, 2003 and is headquartered in New York, NY.

Redwood Trust, Inc. engages in the business of investing in mortgages and other real estate-related assets. It operates through the segments: Residential Lending, Business Purpose Lending, Multifamily Investments, Third-Party Residential Investments, and Corporate. The Residential Lending segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer into the investment portfolio. The Business Purpose Lending segment includes the platform that originates and acquires business purpose residential loans. The Multifamily Investments segment refers to the investments in securities collateralized by multifamily mortgage loans, as well as other investments in multifamily mortgages and related assets. The Third-Party Residential Investments segment contains the investment in residential mortgage-backed securities (RMBS) issued by third parties, investments in Freddie Mac securitizations. The company was founded by George E. Bull III, Douglas B. Hansen and Frederick H. Borden on April 11, 1994 and is headquartered in Mill Valley, CA.

Thank youuu sooooo much for stopping and please check out my weekly penny stocks watchlist HERE and of course, if you are new to trading with Penny Stocks and don’t know where to start I have a step by step e-guide of how to get started with penny stocks, grab it, HERE. And I recently launched my Wealth Builder Community to help my ladies build wealth. And if you don’t want to be a part of the community but you want to learn how to invest longterm, grab my HOW TO CREATE A LONGTERM INVESTING PORTFOLIOcourse HERE

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7 Penny Stock REITs with High Dividend Yields

Louis Navellier’s #1 Stock for 2022

On October 20, the man who recommended Google before anyone else will reveal his #1 stock pick for 2022 — for FREE — ticker symbol and all — in a special presentation.

Wed, October 20 at 4:00PM ET

Sign Up Here, FREE!

These penny stocks offer solid yields to income investors looking for real-estate-related plays

By Mark Putrino, CMT Mar 22, 2021, 12:56 pm EDT

penny stocks - 7 Penny Stock REITs with High Dividend Yields

Some investors like penny stocks. Some investors like high dividend yields. Investors who like both should consider low-priced real estate investment trusts (REITs). These are real-estate firms that own, operate or fund properties that produce income. They also invest in most types of real estate properties, such as apartment buildings, hotels, offices, warehouses and more.

Shares of REITs are publicly traded. This means that they have a lot of liquidity, making it easy to buy and sell them. This isn’t the case with the actual properties, so investing in REITs is a viable option for investors who would like to invest in real estate but that don’t want the problems associated with owning the actual properties themselves.

Most REIT investors are primarily seeking income, or high dividend yields. They typically aren’t seeking price appreciation like other investors. This is because growth companies generally don’t pay dividends like REITs do. Instead, they use their cash to invest back into the company and make it grow. But, as you’ll soon find out, some of these small REITs are also capable of offering investors substantial price appreciation.

So, here are seven penny stock REITS to consider:

hand of person in a suit dangling keys with a house symbol on the ring. Windows overlooking city skyline in background.

Source: ImageFlow/

Sachem Capital is involved in the “originating, underwriting, funding, servicing, and managing of a portfolio of short-term loans.”

More specifically, Sachem offers loans to real-estate investors which fund the acquisitions and development of commercial or residential properties across the east coast, from Connecticut (where the company is based), Massachusetts and other northern states to places like Florida.

Recently, shares of SACH stock have been strong. Over the past year, they have risen from about $1.50 a share to over $5. But even with this appreciation, the REIT still pays a nice dividend. The annual payment of 48 cents works out to be a yield of 9.38%.

According to, Wall Street investment bank Ladenburg Thalmann currently has a buy rating on this pick of the penny stocks.

tiny house figures atop letter blocks spelling out REIT, representing reits to buy. stock predictions

Source: Shutterstock

Next on this list of penny stocks is Western Asset Mortgage Capital, a company based in Pasadena, California. The REIT acquires, finances and manages asset-backed securities investments and several different kinds of loans. It also manages a portfolio of commercial and residential mortgage-backed securities as well other assets.

After a small rally a few months ago, shares of WMC stock have been consolidating, or trading sideways. This is right in the middle of the recent rage. Over the past year, WMC shares have traded as low as $1.37 and as high as $4.46.

What’s more, Blackrock (NYSE:BLK) and Vanguard are the largest holders of Western Mortgage. Together, they hold almost 15% of the shares.

Finally, as far as income goes, Western Asset Mortgage Capital now pays an annual dividend of 11 cents per share. At the current price, this works out to be a dividend yield of about 3.24%.

a person in a suit holds a tiny house to represent reits to buy

Source: Shutterstock

Lument Finance Trust is a REIT that invests in, finances and manages a portfolio of commercial real-estate debt investments in the United States. The company used to be called Hunt Companies Finance Trust. However, it changed its name in December 2020 — and also announced a dividend increase.

Since November, the price of LFT stock shares has climbed from about $2.80 to current levels around $3.53. The current market capitalization is about $88 million. However, even with its recent rally, Lument still pays a nice dividend. The annual payment of 36 cents works out to be a yield of over 10%.

According to The Wall Street Journal, one analyst following LFT stock has it rated as a hold while two analysts have it as a buy. But their average target price is $4.25 a share. That’s about 19% above where the shares are currently trading. Presumably, this means there’s still upside in store for this pick of the penny stocks.

a wooden house shape holds 3 bags of cash representing reits to buy

Source: Shutterstock

New York Mortgage Trust buys, finances and manages mortgage-related single-family and multi-family residential properties in the United States. The company makes investments in residential loans, mortgages and other types of loans and multifamily properties.

Over the past year, shareholders of this company have had a lot to be happy about. Last April, NYMT stock traded around $1. Since then, though, the shares have more than quadrupled in value. Right now, NYMT trades at $4.61 a share.

But even with this appreciation, the stock still has a very attractive dividend. With an annual payout of 33 cents per share, this stock has a dividend yield of about 7%.

According to The Wall Street Journal, New York Mortgage has five analysts rating it as a hold and three analysts rating it as a buy. However, with an average target price of $4.50, they believe this one of the penny stocks is already fairly valued at current prices.

Real estate investment trust (REIT) on a black notebook on an office desk.

Source: Shutterstock

Based in Atlanta, Georgia, Invesco Mortgage Capital is a REIT that focuses on investing in and managing mortgage-backed securities and other mortgage-related assets — from residential mortgage-backed securities (RMBS) to commercial mortgage-backed securities (CMBS).

As REITs and penny stocks go, this is a relatively large company. Right now, IVR stock has a market cap of about $915 million. Despite this, though, the stock is not followed very closely by research firms on Wall Street.

Over the past six months, shares of this REIT have basically been range bound. However, shareholders have still been rewarded with a nice dividend. At 32 cents per share, its yield works out to be around 8%.

Virtual map pin with house icon on it pinned onto green grass with a blue sky background

Source: Shutterstock

Next up on this list of penny stocks, Presidio buys, owns and operates a geographically diversified portfolio of real estate assets, including office, industrial, retail and model-home residential properties. These properties are leased to builders located throughout the United States.

This REIT pays an annual dividend of 40 cents a share. At the current price level, this works out to be a yield of about 10.41%.

All told, though, Presidio is a small company. Currently, its market capitalization is just about $37 million.

As such, the company isn’t followed closely by Wall Street. But some investors believe this is a good thing. If (or when) Wall Street starts to it cover the stock, it could bring new buyers into the market and push the share price higher than the current price of around $3.86.

Hands holding a miniature house and keys

Source: Shutterstock

AG Mortgage Investment Trust is company that invests in a wide variety of real-estate-related securities. Its portfolio consists of credit investments and residential mortgage-backed securities. It also includes residential and commercial properties, loans and land-related financing as well as other types of sophisticated assets and loans that are related to real estate.

Since the beginning of the year, shares of this one of the penny stocks have moved higher sharply. Right now, MITT stock has a price of about $4.33. Currently, the stock also pays an annual dividend of 12 cents a share, making for a yield of about 2.7%.

According to The Wall Street Journal, two analysts have this name as a sell while one analyst has it as a hold. As such, all of them would probably say there are better REITs out there than this one. Still, position or not, it doesn’t hurt to keep MITT on your radar.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Mark Putrino did not have any positions (either directly or indirectly) in any of the aforementioned securities.

Article printed from InvestorPlace Media,

©2021 InvestorPlace Media, LLC

These Penny Stocks Pay MASSIVE Dividends - High Dividend Penny Stocks

Benjamin Graham -- the man who helped train Warren Buffett -- warned that paying too much for a good company can turn it into a bad investment. That's an important warning, especially with the broader market trading near all-time highs. But some companies deserve a premium price, and it's worth paying up for them. Real estate investment trust (REIT)Realty Income (NYSE: O) is a perfect example. Here's why.

1. A price that's not cheap, but...

If you look over the past decade, Realty Income's yield has been as high as 6.5% -- in the depths of the 2020 coronavirus-driven bear market -- and as low as 3.5%. The current yield of roughly 3.9% is toward the low side of that range. However, eyeballing the yield trend on a graph, it looks like it's just a touch below the midpoint of the longer-term trend.

So, the REIT is certainly not cheap, but it doesn't look crazy expensive either. It is, perhaps, best viewed as fair to slightly expensive.

Value hunters definitely won't be interested and would be better off waiting for a stronger entry point. If history is any guide, however, that could be a long wait and involve putting money to work during a period filled with fear (not an easy task, emotionally speaking). Meanwhile, income investors looking for a reliable dividend payer that's stood the test of time might find paying a fair price -- maybe even a bit more -- very appropriate here.

2. A reliable and consistent dividend

One of the first things to like about Realty Income is its dividend. For starters, it's paid monthly, which is kind of like replacing a paycheck. Second, it has been increased annually for over 25 consecutive years, putting this REIT into the exclusive Dividend Aristocrat category. Third, the dividend has increased at an annualized rate of 4.4% since its 1994 initial public offering (IPO), which outpaces the historical 3% average for inflation.

In other words, the buying power of Realty Income's dividend has increased over time. It's also worth highlighting that the REIT hiked its dividend each quarter in 2020, despite the pandemic. Returning cash to investors via a reliable and growing dividend is obviously a top priority -- so much so, in fact, that the REIT nicknamed itself "The Monthly Dividend Company."

3. A conservative and scalable business model

Another thing to like about Realty Income is its focus on net lease properties. Without getting too deeply into it, the company owns the properties in its portfolio, but its lessees are responsible for most of the operating costs of the assets they occupy. Realty Income earns the difference between its cost of capital and the rents it collects. Net lease is generally considered a low-risk way to own property. It is definitely a low-cost approach.

However, a really big benefit is that as long as the REIT can raise cheap capital, it can keep growing profitably. So, in some ways, a fair to premium stock price is good for the company and its shareholders because it supports long-term growth. With over 6,000 properties, there's no reason to think Realty Income lacks the ability to keep expanding (more on this in a second).

4. A solid foundation

Raising cash isn't just about stock sales. Which is why it's nice to see that Realty Income has an investment-grade-rated balance sheet, meaning it can issue debt at advantaged rates. But there's another benefit here: Being investment-grade also means that Realty Income is financially strong, which will appease conservative types who like to err on the side of safety when buying stock.

5. A positive catalyst

If all that isn't enough to entice you to pay up for Realty Income, there's one more fact to look at -- it's in the process of buying peer VEREIT (NYSE: VER). The deal has been approved by both companies' shareholders and is expected to be consummated in the fourth quarter. There are a number of benefits.

The acquisition is expected to be 10% accretive from day one. The portfolio will grow to over 10,000 properties. The combined companies will spin off a separately traded office REIT, removing a less desirable net-lease asset class from its mix. Cost-cutting will happen immediately as redundant job functions are eliminated, as well as over time as VEREIT's higher-cost debt gets refinanced at Realty Income's lower rates.

And Realty Income will be the undisputed king of the net-lease sector, able to take on deals that smaller peers couldn't even consider. In other words, this is a great company on the verge of getting even better.

Sometimes, you pay for what you get

As already noted, if you are a value investor, you probably won't want to buy Realty Income, despite its many positive attributes. But waiting for a better price may also mean that you never end up buying it because investors are aware of how well it's run, and they price it accordingly. For conservative investors looking for a reliable dividend stock today, Realty Income is probably worth every penny it costs.


Stock reits penny

Top REITs for October 2021

Real estate investment trusts (REITs) are publicly traded companies that allow individual investors to buy shares in real estate portfolios that receive income from a variety of properties. They allow investors to easily invest in the real estate sector, which includes companies that own, develop, and manage residential, commercial, and industrial properties.

Among other requirements, REITs are required to pay out at least 90% of their taxable income as dividends. A key REIT metric is funds from operations (FFO), a measure of earnings particular to the industry. Some big names within the sector include American Tower Corp. (AMT), Crown Castle International Corp. (CCI), and Prologis Inc. (PLD).

The COVID-19 pandemic has significantly disrupted the commercial real estate industry, as workers around the world adapted to working from home and various lockdown measures have been enacted. Despite the economy's rebound the industry's recover has been uneven. Some analysts predict a speedy recovery to pre-pandemic levels.

REITs, as represented by an exchange-traded fund (ETF)—the Real Estate Select Sector SPDR Fund (XLRE)—have narrowly outperformed the broader market. XLRE’s 38.8% total return over the past 12 months is just above the benchmark iShares Russell 1000 ETF (IWB), which has provided a total return of 35.5%. These market performance numbers and the statistics in the tables below are as of Sept. 22, 2021.

Here are the top three REITs with the best value, fastest growth, and most momentum.

Best Value REITs

These are the REITs with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

Best Value REITs
Price ($)Market Cap ($B)12-Month Trailing P/E Ratio
Annaly Capital Management Inc. (NLY)8.6712.53.8
AGNC Investment Corp. (AGNC)
New Residential Investment Corp. (NRZ)10.915.18.7

Source: YCharts

  • Annaly Capital Management Inc.: Annaly Capital Management invests in real estate and related assets, including agency mortgage-backed securities (MBS), residential and commercial real estate, and middle-market lending. On Sept. 9, Annaly declared a Q3 2021 cash dividend of $0.22 per common share. The dividend is payable Oct. 29 to shareholders of record as of Sept. 30, 2021.
  • AGNC Investment Corp.: AGNC Investment invests mainly in residential MBS on a leveraged basis through collateralized borrowings. It uses an active portfolio management strategy to provide risk-adjusted returns.
  • New Residential Investment Corp.: New Residential Investment invests in the residential housing sector. The company owns mortgage servicing-related assets, residential loans, and similar investments. New Residential Investment announced on Aug. 23 that it had completed the acquisition of mortgage originator and servicer Caliber Homes Loans Inc. The deal was initially announced on April 14, 2021. The company said it planned to bring together the mortgage platforms of Caliber and Newrez LLC, which is New Residential's wholly owned mortgage originator and servicer, Newrez LLC. The acquisition is expected to add a roughly $150 billion unpaid principle balance of mortgage servicing rights (MSRs), technological enhancements, and other benefits. Terms of the deal were not disclosed in the announcement.

Fastest Growing REITs

These are the top REITs as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one figure or the other unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.

Fastest Growing REITs
Price ($)Market Cap ($B)EPS Growth (%)Revenue Growth (%)
Weyerhaeuser Co. (WY)35.2626.41,27092.8
Jones Lang LaSalle Inc. (JLL)234.7811.91,22022.5
Sun Communities Inc. (SUI)194.5622.660.7100.0

Source: YCharts

  • Weyerhaeuser Co.: Weyerhaeuser is a forest products company that grows and harvests trees and develops real estate. The company also provides construction services and forest products. On July 30, the company announced that net earnings soared 14-fold as revenue rose nearly 7%. in Q2 2021 ended June 30, 2021. Adjusted EBITDA reached a record level. The profit performance was driven by a significant increase in export sales realizations and a more modest improvement in export sales volumes.
  • Jones Lang LaSalle Inc.: Jones Lang LaSalle is a real estate and investment management service provider. The company provides services such as tenant representation, property management, leasing, finance, and valuation services to a variety of corporate and institutional clients globally. On Sept. 13, the company announced the appointment of Siddharth Taparia to chief marketing officer. Taparia will be responsible for global marketing strategy and all marketing activities worldwide. Previously, Taparia was senior vice president and global head of corporate brand and experience marketing at software company SAP SE (SAP).
  • Sun Communities Inc.: Sun Communities owns and operates manufactured-housing communities. The company owns properties throughout the Midwest and the Southeast regions of the United States, as well as Canada.

REITs with the Most Momentum

These are the REITs that had the highest total return over the last 12 months.

REITs with the Most Momentum
Price ($)Market Cap ($B)12-Month Trailing Total Return (%)
Jones Lang LaSalle Inc. (JLL)234.7811.9137.8
Simon Property Group Inc. (SPG)130.3842.9114.9
CBRE Group Inc. (CBRE)93.7331.5101.8
iShares Russell 1000 ETF (IWB)N/AN/A35.5
Real Estate Select Sector SPDR Fund (XLRE)N/AN/A38.8

Source: YCharts

  • Jones Lang LaSalle Inc.: See above for company description.
  • Simon Property Group Inc.: Simon Property Group is a REIT that owns, develops, and manages malls, outlet centers, community centers, and other related properties.
  • CBRE Group Inc.: CBRE Group is a real estate service provider. The company offers valuation, advisory, real estate investment, and property management services. It focuses on offices, hotels, gaming properties, multifamily residences, and data centers. In September, the company announced it was the top-ranked firm for commercial real estate investment sales globally in the first half of 2021, according to Real Capital Analytics. CBRE Group had a 23.7% market share across all property types on a worldwide basis during that period, nearly twice as big as the two next biggest rivals, according to RCA.

The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.


So, to write about the three best REITs to buy in October, based on my very humble opinion, I first had to choose them.

And where better to start than in the little group of 10 REITs that I now have in my own portfolio? I'm of retirement age and while interested in growth, I'm also keen on capital preservation and some reliable income flow from this part of our nest egg.

That's how I've chosen to buy what I own now, and if I can't pick three of these real estate stocks as among the best, why own them in the first place, right?

That said, let's look, in alphabetical order, at Alexandria Real Estate Equities (NYSE: ARE), Innovative Industrial Properties (NYSE: IIPR), and STORE Capital (NYSE: STOR).

Alexandria Real Estate Equities

Founded in 1994, San Diego-based Alexandria has used triple net leases and deep and expanding partnerships across the life sciences spectrum to profitably build its presence in and around Boston, San Francisco, New York City, San Diego, Seattle, the Maryland suburbs, and North Carolina's Research Triangle.

That focus on innovation cluster locations has built synergy and business that as of June 30 gives this self-described urban office REIT an asset base in North America of 58.1 million square feet, including 36.7 million now in operation and the rest in various stages of development.

The essential nature of Alexandria's lab-friendly properties are typified in this latest news from a provider of COVID-19 vaccines: "Moderna Plans New Cambridge HQ."

Alexandria stock closed at $194.03 on Oct. 4, 7.5% below its 52-week high of $209.76 from Sept. 1. That was good for a market cap of $29.6 billion and a yield of 2.31% based on a 12-month dividend payout of $4.48 per share.

Innovative Industrial Properties

How much the marijuana business has changed was evident in this article from back home the other day: "Ohio Marijuana Expo … Draws Dozens of Vendors, Thousands of Attendees."

Back in the day, some of those "thousands of attendees" would have been officers of the law perfectly happy to accommodate anyone with that kind of arrest-wish.

But not anymore. Those were perfectly legitimate business folks gathered at the Summit County Fairgrounds. They couldn't sell pot from their booths, since the recreational type is still illegal in the Buckeye State, but they, and anyone else, can invest in San Diego-based IIPR, the first and so far the only NYSE-listed real estate company that specializes in the legal marijuana industry.

IIPR buys and leases facilities back to medical marijuana growers and provides capital to an industry where many banks and credit unions still dare not tread. The five-year-old firm has grown fast, and as of Oct. 1, IIP owned 75 properties in 19 states. It's also still on a buying spree, notching four acquisitions just since July 1.

IIPR stock closed at $228.27 on Oct. 4, 9.99% below its 52-week high of $253.61 from Sept. 7. That was good for a market cap of $5.5 billion and a yield of 2.63% based on a 12-month dividend payout of $6.00 per share.

STORE Capital

STORE Capital is a strong candidate for anyone seeking exposure to commercial real estate in their portfolio, especially if focusing on retail REITs.

Don't believe us? Just ask Warren Buffett. The Oracle of Omaha bought $377 million of STORE stock in 2017, nearly 10% of the shares outstanding at the time. It's still his only reported REIT holding.

Scottsdale, Arizona-based STORE is a net lease REIT that as of June 30 had 2,738 locations occupied by 529 tenants in 49 states. That diversity is not just geographical: About 64% of its tenants are considered service businesses, with 17% in pure retail and 19% in manufacturing.

One more interesting detail, STORE's top two leaders are both women: co-founder and CEO Mary Fedewa and newly named CFO Sherry Rexroad. Where would that matter? Maybe at the bottom line.

STORE stock closed at $32.97 on Oct. 4, 11.2% below its 52-week high of $37.13 from July 30. That was good for a market cap of $9 billion and a yield of 4.66% based on a 12-month dividend payout of $1.54 per share.

The Millionacres bottom line

There are many REITs I could have chosen for this little list, but for this season of the year -- and season of my life -- each of these three makes good sense to me, and they might to you, too.


Now discussing:

And my fairy tale turned into a terrible nightmare. And then a week passed. The princess has everything as before. Studying, fitting, etiquette lessons, gifts about the groom, trips with parents, etc.

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