2 Residential REITs With Yields Up To 4.8% To Buy And Hold For The Long Term

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The U.S. real estate market is more unaffordable than ever before, pushing more people to rent rather than buy and making residential real estate investment trusts (REITs) very attractive for long-term investors and those seeking dividend income.

Residential REITs offer investors the benefits of owning rental properties without the hassles of being a landlord or the large up-front expense of acquiring a property. They also carry the benefit of being liquid, since you can sell a stock any time the market is open, compared with a property that could take months or years to sell.

That said, let's take a look at two residential REITs you could buy today.

NexPoint Residential Trust, Inc.

NexPoint Residential Trust NXRT owns and manages a portfolio of 39 multifamily properties consisting of 14,485 units across 11 markets in the Southern U.S., including Charlotte, Dallas-Fort Worth, Houston, Las Vegas, Orlando, Phoenix, Raleigh, and Tampa.

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NexPoint currently pays a quarterly dividend of $0.46242 per share, equating to an annualized dividend of about $1.85 per share and giving its stock a yield of about 4.8% at the time of this writing. 

On top of offering a high yield, NexPoint is a dividend-growth star. It has raised its annual dividend payment for eight consecutive years, and its 10.1% hike  in October has it on pace for 2024 to mark the ninth consecutive year with an increase.

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Independence Realty Trust, Inc.

Independence Realty Trust IRT owns and operates a portfolio of 110 apartment communities containing 32,685 apartment units across non-gateway U.S. markets, including Atlanta, Columbus, Dallas, Denver, Houston, Indianapolis, Memphis, Nashville, Oklahoma City, Raleigh, and Tampa.

Independence Realty currently pays a quarterly dividend of $0.16 per share, equating to an annualized dividend of $0.64 per share, which gives its stock a yield of about 3.8% at the time of this writing. 

It's important to note that Independence Realty has also raised its dividend each of the last two years following a reduction in 2020 due to uncertainty caused by the COVID-19 pandemic. With operations back to normal, investors should count on it for a reliable source of growing income in the years ahead.

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