Many REITs have increased dividends during 2013, with additional increases likely. Improved profitability gives REIT managements confidence that dividends can be maintained.
REIT yields have risen as the stock market reflects fear of higher interest rates, although few REITs actually own portfolios invested in financial assets. Health Care REITs offer attractive yields of 5.5% on average. Industrial REITs now yield 4.3%, while Office REITs yield 4.4% on average. Yields for Residential REITs increased to 3.9% as Residential REITs traded lower. Retail REITs now yield 3.9% on average, while Specialty REITs now yield 4.4%. Hotel REITs are still the lowest yielding sector at 3.2%. 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 November, 2013 is 4.6%.
REIT Growth and Income Monitor covers 122 REITs with total market cap of $591 billion,
as of the end of November, 2013.
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