Investing

Raymond James Very Bullish on 5 Top High-Yielding, Inflation-Busting REITs

Realty Income

This is an ideal stock for growth and income investors looking for a safer, inflation-busting idea for this year. Realty Income Corp. (NYSE: O) is an S&P 500 company dedicated to providing stockholders with dependable monthly income. It is structured as a real estate investment trust (REIT), and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants.

To date, the company has declared 604 consecutive common stock monthly dividends throughout its 51-year operating history and increased the dividend 108 times since its public listing in 1994, garnering it a spot on the S&P 500 Dividend Aristocrats index.

Realty Income stock investors receive a 4.32% distribution. The Raymond James price objective is $76. The consensus target is higher at $78.71, and shares traded at $69.20 early Wednesday.

Spirit Realty Capital

This top company is the highest yielding of the Raymond James picks. Spirit Realty Capital Inc. (NYSE: SRC) is a premier net-lease REIT that primarily invests in single-tenant, operationally essential real estate assets, subject to long-term leases.

As of September 30, 2020, the company had a diverse portfolio of 1,778 owned properties, with an aggregate leasable area of 37.2 million square feet in 48 states, including retail, industrial and office buildings leased to 296 tenants across 28 retail industries.

The analysts are very positive and said this in the research report when discussing the potential for a strong 2022:

Spirit announced 2022 adjusted funds from operations/share guidance of $3.52-3.58 (above our $3.48 estimate and consensus of $3.47 at the time of the announcement), implying ~7.4% year-over-year growth at the midpoint. The initial guidance assumes $1.3-1.5 billion of capital deployment (we are now modeling just under $1.5 billion) as well as ~$100 million of dispositions.

Investors receive a 5.59% distribution. Raymond James has set its target price at $55. The consensus target is $53.37, and the stock was trading at $46.50.


These five top REITs pay dependable distributions, some above the 5% level. With the prospect of continued low interest rates despite the Federal Reserve hikes this year and next, and the stock market extremely risky and very volatile, it makes sense to have solid assets like real estate. It is important to remember that REIT distributions can contain return of principal.

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