Most REITs increased dividends during 2014, indicating confidence in FFO growth. Improved profitability makes additional dividend increases likely.
Health Care REITs offer attractive yields of 5.0% on average. Industrial REITs now yield 4.4% (down due to stock price rebound), while Office REITs yield 3.7% on average. Yields for Residential REITs are now 3.4%. Retail REITs yield 4.1% and Specialty REITs yield 4.0% on average. Despite dividend increases, Hotel REITs are still the lowest yielding sector at 2.8%. Financial REITs offer income investors the highest yield, at 8.5% on average.
Variability in yield for each sector is greater than shown here. Average yield for all REITs as of October, 2014 is 4.3%.
REIT Growth and Income Monitor covers 132 REITs with total market cap of $799 billion, as of the end of October, 2014.
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