Many investors sort through the 220 different REITs looking for the highest-yielding real estate investment trust options. Only 75 of the REITs have dividend yields over 5% which greatly narrows the field for those looking for high-yield stocks. Many REITs have had to cut their dividend in the last six months so it is not easy to find dividend growth in this sector.
We have identified only four REITs with a dividend yield over 5% that have a positive return in 2012 and have raised their dividend for two consecutive years or more.
Getty Realty Corp (GTY)
Getty Realty Corp is a U.S. REIT that owns and leases fuel and convenience store properties. It also owns petroleum distribution terminals. Getty owns over 900 properties located in the North East and Mid-Atlantic. Last year it purchased almost 60 Mobil branded gas stations.
GTY has a dividend yield of 8.3% and has raised the dividend for nine consecutive years. Getty had to make an extra dividend distribution in 2011, to continue its streak of increases. The stock is up 25.5% so far in 2012.
Omega Healthcare Investors (OHI)
Omega Healtchare is a REIT that is investing in income producing healthcare facilities. Most of the properties are long-term care facilities in the US. Omega provides lease or mortgage financing to assisted living and nursing facilities.
OHI has a dividend yield of 7.4% and has been raising the dividend just about every quarter since 2009. It has increased the annual dividend for eight consecutive years. Omega's stock is up 13.2% in 2012.
One Liberty Properties (OLP)
One Liberty Properties owns and manages retail, industrial and health related properties. Many of the 84 properties are under long-term leases. The properties are located in 29 U.S. states where they continued to acquire new properties in 2011.
OLP cut the dividend in 2009 but since then has raised the dividend in 2010 and 2011. It has a dividend yield of 7.2% and the stock is up 10.8% so far in 2012.
Senior Housing Property Trust (SNH)
Senior Housing Property Trust is a REIT that owns more than 320 properties in 36 U.S. states. Over 200 of the properties are senior living facilities. It also owns two rehab hospitals, 82 medical office buildings and 10 wellness centers.
SNH has a dividend yield of 6.5% and has raised its dividend for 10 consecutive years. They are modest increases but increases nonetheless. The five-year dividend growth rate is 2.3%. SNH is up 3.5% in 2012.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.