If you have been considering a REIT as one of your next investments, here are some interesting facts for you. There are only 127 REITs out there that currently have a dividend yield over 3%. Only 44 of those have increased their dividend for 1 year or more. That leaves slim pickings for REIT investors who like dividend growth.
Only 9 Real Estate Investment Trusts have been raising their dividends for more than 5 years. We have excluded HCP Inc (HCP), Senior Housing Properties (SNH) and Universal Health Realty Income (UHT) from this list because we recently covered them in our Healthcare REIT post. Each of REITs listed below has a yield over 4%.
National Retail Properties (NNN)
National Retail Properties has increased their dividend for 19 consecutive years, and has a dividend yield of 5.7%. It has a 5 year dividend growth rate of 2.9%, and has been paying dividends since 1990. In 2011, National Retail Properties owned almost 1200 investment properties. It owns and develops real estate properties that are leased to retail tenants under long term leases.
Digital Realty Trust (DLR)
Digital Realty Trust has increased their dividend for 6 consecutive years and has a dividend yield of 4%. Its 5 year dividend growth rate is 21% and it has been paying dividends since 2004. DLR owned almost 100 technology related properties that mostly consist of data center facilities. It has continued to add properties to its portfolio in 2012 by making purchases in California and Ireland.
Getty Realty Corporation (GTY)
Getty Realty Corporation has increased their dividend for 9 consecutive years. Its dividend yield is 8.3%, which is very close to its 8.1% 5 year average. GTY has a 5 year dividend growth rate of just over 2%. Getty is a bit of a unique REIT, because its focus is on owning and leasing retail fuel and convenience store properties. It owns over 900 properties located all over the US.
Realty Income Corporation (O)
Realty Income Corporation has increased their monthly dividend for 14 consecutive years and has a dividend yield of 4.7%. It has a 5 year dividend growth rate of 3.6% and has paid dividends since 1994. Realty Income owns almost 2500 properties in 29 US States. Its primary objective is to generate monthly income from its properties.
Urstadt Biddle Properties (UBP)
UBP has increased their dividend for 12 consecutive years. Its dividend yield is 4.6%, which is below its 5 year yield average of 5.9%. UBP has a low 5 year dividend growth rate of 1.8%. Urstadt Biddle owns and manages commercial real estate. Most of its properties are community shopping centers and office buildings located in the North East.
Washington REIT (WRE)
Washington REIT has increased their dividend for 42 consecutive years. It has a dividend yield of 5.7%, which is just below its 5 year average of 6.2%. WRE has a 5 year dividend growth rate of 1.1%. Washington REIT is focused on owning properties in the Washington Metro area. The REIT owns office buildings, medical office buildings, retail centers and multifamily buildings. All together they owned 85 properties in early 2011.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.