The real estate sector usually holds its ground during extreme stock market volatility, but the coronavirus has hammered this sector pretty hard. In fact, no sector has been spared. This has created an amazing opportunity to invest in real estate by means of real estate investment trusts (REITs). Here are a few solid, high-yield dividend REIT stocks we're packing into our coronavirus basket during this slump.
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1. Invesco Mortgage Capital, Inc
Invesco Mortgage Capital Inc, (IVR) is a mortgage REIT (mREIT) that focuses on investing in, financing and managing residential and commercial mortgage-backed securities. Based in Atlanta, GA, IVR has a dividend yield of nearly 12% and a market cap of $2.48B. This yield has recently been inflated to over 20.5%, due to a drop in stock price from a 52-week high of $18.30. IVR seeks to "deliver competitive returns with consistent dividend income and stable book value". Dividend income is truly part of IVR's game.
On 03/17/2020, IVR declared a quarterly dividend of $0.50/share, payable on April 28, 2020 to shareholders of record on April 1, 2020. The ex-dividend date is March 31, 2020. IVR's annual dividend payout has been increasing since 2016:
2016: $1.600; 2017: $1.610; 2018: $1.680; 2019: $1.770; 2020: $2.00 projected ($0.50/quarter)
2. Plymouth Industrial REIT, Inc
Plymouth Industrial REIT, Inc (PLYM), as its website claims is is a "vertically integrated and self-managed real estate investment trust focused on the acquisition and operation of single and multi-tenant industrial properties located in secondary and select primary markets across the United States." Like other REIT stocks, the coronavirus has not been too favorable to PLYM. PLYM's current yield stands at 11.76% and is currently trading at $11.11/share (03/18/2020, 1:45PM). This industrial REIT, with an annualized dividend of $1.50/share, recently declared a quarterly dividend of $0.375/share, payable on April 30, 2020 to shareholders of record on March 31, 2020. The ex-dividend date is March 30, 2020. PLYM has a current Zack's ranking of 2-buy.
3. Global Medical REIT, GMRE
Global Medical REIT, Inc (GMRE) is a net-lease medical office REIT that acquires purpose-built specialized healthcare facilities to strong healthcare systems and physician groups with leading market share. GMRE has a current yield that stands at 9.21%, a P/E ratio of 71, and an annualized dividend of $0.80/share. GMRE declared a quarterly dividend of of $0.200/share on March 3, 2020, payable on April 9, 2020 to shareholders of record on March 25, 2020. GMRE goes ex-dividend on March 24, 2020.
The bottom line
Like all sectors of the economy, the real estate sector as a whole is facing severe economic headwinds. This has created a tremendous opportunity for investors who want to add income to their portfolios. REITs, by design, are required to distribute at least 90% of their taxable income to shareholders. Once the coronavirus epidemic dust settles, we believe the sector should experience a strong rebound.
If you are not comfortable picking great stocks during this slump, you can hire a financial advisor to get the job done. Got any great REIT stocks ideas for the coronavirus slump? Please share with us in the comment section.
Disclosure: We have no holdings in any of the stocks mentioned. We wrote this article ourselves. It expresses our opinions. We do not receive compensation from the companies highlighted, nor do we have any business relationships with those companies. All data is current as of 03/18/2020, 2:00PM. This article contains an affiliate link to an investment product. We may receive a commission through this link when you join the partner. Our full disclaimer.