9 High Yield Reits With Growing Dividends

U.S. REITs were created in 1960 by Congress as a way for all investors to have access to large-scale, income-producing real estate accessible. To qualify as a REIT, the trust must comply with IRS rules. These rules include: 1) distributing annually as dividends at least 90% of its taxable income, 2) investing at least 75% of its total assets in real estate and 3) deriving at least 75% of gross income from real estate. The 90% distribution requirement along with no corporate income taxes are the reasons REITs yields are often above average. However, it is important to note that because REITs pay no income tax, their dividends are not eligible for the special treatment as a "qualified dividends", which are normally taxed at 15%. When comparing REIT yields to investments with qualified dividends, you must always look at them on an after-tax basis. REITs trade on major stock exchanges and have become immensely popular since their introduction. This week week, I screened my dividend growth stocks database for REITs with a yield at or above 5% and have increased their dividends for at least 10 consecutive years. The results are presented below: W.P. Carey & Co. (WPC) Yield: 5.1% | Years of Dividend Growth: 12 W. P. Carey & Co. LLC is an investment firm that provides long-term sale-leaseback and build-to-suit transactions for companies worldwide and manages a global investment portfolio. Realty Income Corp. (O) Yield: 5.2% | Years of Dividend Growth: 17 Realty Income Corporation is a real estate investment trust that owns a diversified portfolio of 2,339 retail properties as of Dec. 31, 2009. HCP, Inc. (HCP) Yield: 5.2% | Years of Dividend Growth: 11 Health Care Property Investors, Inc. is an equity-oriented real estate investment trust, based in California, that has direct or joint venture investments in health care-related facilities across the U.S. Corporate Office Properties (OFC) Yield: 5.3% | Years of Dividend Growth: 14 Corporate Office Properties is a real estate investment trust that owns, manages, leases, acquires and develops suburban office properties located in Mid-Atlantic region of the U.S.12... Read more