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7 High-Yield REITs to Consider

Most of us love the idea of investing money into dividend stocks and getting paid by the investments.

If you have enough money like me, you can live from your dividend payments alone. Great second irregular incomes are capital gains which are nearly twice of the amount of my dividend income.

I also wasn’t born rich but I always tried to find the best investments in the best places, to realize a good return. A high yield is not the only rule you need to consider. You also must be disciplined by saving money. In your first years of investing, savings will be your number one source for reinvestment because your dividend cash will not be high enough to grow.

Today, I'd like to show you some of the best yielding stocks with a yield of more than five percent that pay dividends on a monthly basis. Some of them are very risky and offer a double-digit yield. But if you like to see a monthly dividend check, you should take a look at the list below, which are my recommendations to buy.

Here are my favorite stocks:

ARMOUR Residential REIT (ARR) has a market capitalization of $2.16 billion. The company generates revenue of $12.18 million and has a net income of $-9.44 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $-9.39 million. The EBITDA margin is -77.12 percent (the operating margin is -77.12 percent and the net profit margin of -77.54 percent).

Financial Analysis: The total debt represents 85.96 percent of the company’s assets and the total debt in relation to the equity amounts to 851.57 percent. Due to the financial situation, a return on equity of -2.57 percent was realized. Twelve trailing months earnings per share reached a value of $0.91. Last fiscal year, the company paid $1.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.70, the P/S ratio is 177.64 and the P/B ratio is 1.07. The dividend yield amounts to 13.71 percent and the beta ratio has a value of 0.19.

Realty Income (O) has a market capitalization of $5.52 billion. The company employs 92 people, generates revenue of $421.06 million and has a net income of $151.14 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $383.44 million. The EBITDA margin is 91.07 percent (the operating margin is 36.24 percent and the net profit margin is 35.89 percent).

Financial Analysis: The total debt represents 46.5 percent of the company’s assets and the total debt in relation to the equity amounts to 91.14 percent. Due to the financial situation, a return on equity of 7.41 percent was realized. Twelve trailing months earnings per share reached a value of $0.85. Last fiscal year, the company paid $1.74 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 48.57, the P/S ratio is 13.10 and the P/B ratio is 2.87. The dividend yield amounts to 4.41 percent and the beta ratio has a value of 0.74.

LTC Properties (LTC) has a market capitalization of $1.11 billion. The company employs 17 people, generates revenue of $85.16 million and has a net income of $49.67 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $75.59 million. The EBITDA margin is 88.77 percent (the operating margin is 58.33 percent and the net profit margin is 58.33 percent).

Financial Analysis: The total debt represents 24.60 percent of the company’s assets and the total debt in relation to the equity amounts to 34.11 percent. Due to the financial situation, a return on equity of 10.59 percent was realized. Twelve trailing months earnings per share reached a value of $1.57. Last fiscal year, the company paid $1.68 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.14, the P/S ratio is 13.01 and the P/B ratio is 2.57. The dividend yield amounts to 5.12 percent and the beta ratio has a value of 0.85.

Take a closer look at the full list of the best yielding monthly dividend paying REITs. The average P/E ratio amounts to 49.19 and forward P/E ratio is 20.14. The dividend yield has a value of 8.0 percent. Price to book ratio is 1.49 and price to sales ratio is 8.29. The operating margin amounts to 41.25 percent and the beta ratio is 0.84. Stocks from the list have an average debt to equity ratio of 1.94.

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Best monthly dividend paying real estate investment trusts originally published at long-term-investments.blogspot.com.

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

Visit Dividend's Website


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