3 Income REITs to Buy in February
Key Points
Crown Castle sees 7% to 8% annual dividend growth over the coming years.
Digital Realty has increased its payout in each of the last 16 years.
SL Green has boosted its high-yield dividend every year for more than a decade.
Real estate investment trusts (REITs) allow anyone to own a stake in income-producing real estate. This means they can be great for generating passive income. Currently, the average dividend yield across the REIT sector is 2.6%, more than double the 1.2% yield of stocks in the S&P 500 .
Three REITs that stand out for their income-generating capabilities are Crown Castle International ( NYSE:CCI ), Digital Realty Trust ( NYSE:DLR ), and SL Green Realty ( NYSE:SLG ). With shares of all three selling off along with the broader stock market last month, they look like great buys this February. Image source: Getty Images. 1. Crown Castle: Connected to a powerful growth trend
Shares of Crown Castle stumbled out of the gate in 2021, declining by more than 12% in January. That sell-off helped push its dividend yield up to 3.3% in early February.
That slump comes even though the infrastructure REIT reported strong quarterly results last month. Crown Castle grew its adjusted funds from operations (AFFO) by 14% for the full year, helping support an 11% increase in its dividend. The communications infrastructure company also slightly increased its 2022 outlook after signing a new long-term deal with T-Mobile to support its 5G rollout.Crown Castle sees lots of 5G-driven growth ahead as mobile carriers utilize more infrastructure to support the faster network. That leads the REIT to believe it can grow its dividend at a 7% to 8% annual pace over the next few years. With shares now cheaper, Crown Castle offers the potential of generating even […]
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