10 Inflation-Busting Big-Dividend REITs Can Thrive as Interest Rates Shoot Higher

The company, together with its joint venture, currently owns a portfolio of properties, consisting of 12 premier destination resorts in Las Vegas and elsewhere across the United States; MGM Northfield Park in Northfield, Ohio; Empire Resort Casino in Yonkers, New York; as well as a retail and entertainment district, The Park, in Las Vegas.

The destination resorts collectively comprised approximately 27,400 hotel rooms, 1.4 million casino square footage, and 2.7 million convention square footage. As a growth-oriented public real estate entity, the company expects its relationship with MGM Resorts and other entertainment providers to position the company attractively for the acquisition of additional properties across the entertainment, hospitality and leisure industries.

Shareholders receive a 5.09% dividend. The $43 Deutsche Bank price target is higher than the $41.64 consensus target. MGM Growth Properties stock closed at $40.80 on Tuesday.

Postal Realty Trust

This is among the safest bets of all for investors. Postal Realty Trust Inc. (NYSE: PSTL) is an internally managed REIT that owns and manages over 1,400 properties leased primarily to the U.S. Postal Service, ranging from last-mile post offices to larger industrial facilities. The company believes it is one of the largest owners and managers of properties leased to the USPS.

Despite the problems the postal service has had over the years, the bottom line for investors is that being government owned guarantees timely payment of rent, the offices do not move and Postal Realty Trust is not required to keep onsite management at the various facilities.

Shareholders receive a 5.58% distribution. Aegis has set a $23 price target, and the consensus target is $21.13. The stock closed on Tuesday at $16.49.

Realty Income

This is an ideal stock for growth and income investors looking for a safer, inflation-busting idea for 2022. Realty Income Corp. (NYSE: O) is an S&P 500 company dedicated to providing stockholders with dependable monthly income.

This REIT’s monthly distributions 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 608 consecutive common stock monthly dividends throughout its 52-year operating history and increased the dividend 109 times since its public listing in 1994. It is a top real estate member of the S&P 500 Dividend Aristocrats index.

Investors are paid a very solid 4.38% distribution. The Realty Income stock price target at Goldman Sachs is $87. The $77.63 consensus target is closer to the $67.67 per share close on Tuesday.

STORE Capital

This company is focused on very popular retail outlets and is offering an outstanding solid entry point. STORE Capital Corp. (NYSE: STOR) is an internally managed net-lease REIT that is the leader in the acquisition, investment and management of single-tenant operational real estate, which is its target market.

This is one of the largest and fastest-growing net-lease REITs and owns a large, well-diversified portfolio that consists of investments in more than 2,500 property locations across the United States, most of which are profit centers.

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