Top Wall Street Strategist Says Smart Money Is Buying Big Dividend REITs: 5 Top Picks

Global Medical REIT

Income investors should take a long look at this company. Global Medical REIT Inc. (NASDAQ: GMRE) engages in the acquisition of purpose-built health care facilities and leasing of those properties to strong health care systems and physician groups.

The company acquires off-campus health care facilities at 7.0% to 8.5% cap rates, funded with a low- to mid-6% cost of equity, and it draws on its credit facility (low-2% current cost of debt). Collections have outperformed expectations during the pandemic. Cost of capital is tied to benefits of diversification and external growth potential.

Inventors receive a 4.80% distribution. B. Riley Securities has an Overweight rating and an $18 price target. The consensus target is $18.67, and the last trade on Wednesday was at $17.12 a share.

Medical Properties Trust

This stock may offer investors the best value at current price levels. Medical Properties Trust Inc. (NYSE: MPW) acquires, develops and invests in health care facilities and leases health care facilities to health care operating companies and providers. The company also provides mortgage loans to health care operators, as well as working capital and other term loans to its tenants/borrowers.

With a growing portfolio and a versatile business model, the company continues to rank high across Wall Street. The analysts noted that the company’s acute care hospitals rent coverage increased nicely and the company attributed the increase to better cost controls and higher patient admissions.

Shareholders receive a 4.71% distribution. The Raymond James Strong Buy rating comes with a Wall Street high $26 price target. The consensus target is $24.64. The shares closed trading on Wednesday at $23.33.

MGM Growth Properties

This company is a triple net lease REIT formed in April 2016 when it was spun out of MGM Resorts. MGM Growth Properties LLC (NYSE: MGP) is one of the leading publicly traded REITs engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts with diverse amenities including casino gaming, hotel, convention, dining, entertainment and retail offerings.

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