Wall Street Expects 5 High-Yield Dividend REITs to Explode Higher in 2025

By Lee Jackson Published Jan 25, 8:12AM EST

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REITs provide dependable passive income streams, some of which pay monthly.
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Wall Street Expects 5 High-Yield Dividend REITs to Explode Higher in 2025 — © SWKStock / Shutterstock.com

After an incredible run for the S&P 500 in 2023 and 2024, many across Wall Street feel that the momentum can carry through to 2025. After two years of 20+ gains, history says the odds for a continued move higher are good. One of the sectors that took off last summer but retreated as yields moved higher was the real estate investment trust (REIT) stocks. As rates stabilize and trend lower this year, there is a good chance they will be back in favor.

The top market strategist at BTIG Research feels that after a strong move higher last year, then a pullback, REITs have the potential for another leg up. They noted this in a recent research piece:

A Second Chance for REITs. In July, we suggested REITs were poised for ~8% upside. They achieved that move by September and have subsequently retraced back to that breakout point. If you missed the move the first time, they are providing a second chance here.

We screened our 24/7 Wall St. REIT research database, looking for companies that pay among the highest yields and offer solid growth potential. We purposely avoided the mortgage REIT segment, as it tends to be more volatile and sensitive to interest rates. Five top companies are our top ideas for 2025, and all are Buy-rated by some of the top firms on Wall Street.

Why do we cover real estate investment trusts?

An adage on Wall Street referring to real estate attributed to Mark Twain says, “Buy land; they’re not making it anymore.” While somewhat simplistic, it’s true, and real estate has long been a staple investment for some of the wealthiest and brightest investors in history.

Apple Hospitality REIT

This REIT owns one of the largest portfolios of upscale, select-service hotels in the United States.

Apple Hospitality REIT Inc. (NYSE: APLE) is a publicly traded real estate investment trust that pays a solid 6.15% dividend and stands out in the market with its unique offering.

Despite its name, Apple Hospitality is not affiliated with the technology giant. However, it offers solid total return potential, owning one of the largest and most diverse portfolios of upscale, room-focused hotels in the United States.

Apple Hospitality’s portfolio comprises 220 hotels with over 28,900 guest rooms in 87 markets throughout 37 states and one property leased to third parties.

Concentrated on industry-leading brands, the company’s hotel portfolio comprises:

100 Marriott-branded hotels
120 Hilton-branded hotels
Five Hyatt-branded hotels

EPR Properties

EPR Properties is a specialty REIT that invests in properties in select market segments that require unique industry knowledge.

This REIT invests in some of the most popular entertainment companies and pays a solid 7.85% dividend. EPR Properties (NYSE: EPR) is a leading experiential net lease real estate investment trust (REIT) specializing in select enduring experiential properties in the real estate industry.

The company focuses on real estate venues that create value by facilitating out-of-home leisure and recreation experiences where consumers spend their time and money.

EPR Properties has nearly $6.7 billion in total investments across 44 states. It adheres to rigorous underwriting and investing criteria centered on key industry, property, and tenant-level cash flow standards. Senior management believes its focused approach provides a competitive advantage and the potential for stable and attractive returns.

Realty Income

Realty Income is an REIT that invests in free-standing, single-tenant commercial properties.

This is an ideal stock for growth and income investors looking for a safer contrarian idea for the rest of 2024 that pays a whopping 6% dividend. Realty Income Corp. (NYSE: O) is an S&P 500 company that provides stockholders with dependable monthly income.

The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 15,540 real estate properties (including properties acquired in the Spirit merger in January 2024) owned under long-term lease agreements with commercial tenants.

Realty Income has declared 649 consecutive common stock monthly dividends throughout its 55-year operating history and increased the dividend 123 times since Realty Income’s public listing in 1994. For increasing the dividend for the last 29 consecutive years, it is a top real estate member of the S&P 500 Dividend Aristocrats index.

Starwood Property Trust

Starwood Capital is an established global investor with international investments that encompass more than 30 countries.

This high-yielding company, run by real estate legend Barry Sternlicht, offers big-time total return potential and a 9.90% dividend. Starwood Property Trust Inc. (NYSE: STWD) operates as an REIT in the United States, Europe, and Australia.

It operates through four segments:

Commercial and Residential Lending
Infrastructure Lending
Property
Investing and Servicing segments

The Commercial and Residential Lending segment:

Originates, acquires, finances, and manages commercial first mortgages
Non-agency residential mortgages
Subordinated mortgages
Mezzanine loans
Preferred Equity
Commercial mortgage-backed securities (CMBS)
Residential mortgage-backed securities

The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments.

The Property segment primarily develops and manages equity interests in stabilized commercial real estate properties, such as multifamily properties and commercial properties subject to net leases, that are held for investment.

The Investing and Servicing segment:

Manages and works out problem assets
Acquires and contains unrated, investment grade, and non-investment grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions
Originates conduit loans to sell these loans into securitization transactions and acquire commercial real estate assets, including properties from CMBS trusts

VICI Properties

Vici Properties is an REIT based in New York City specializing in casino and entertainment properties.

This is one of the top picks across Wall Street in the net lease group. It is ideal for more conservative investors looking for gaming exposure and a solid 6.01% dividend. VICI Properties Inc. (NYSE: VICI) is an S&P 500 experiential real estate investment trust with one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including three iconic entertainment facilities on the Las Vegas Strip.

Caesars Palace Las Vegas
MGM Grand
The Venetian Resort Las Vegas

VICI Properties owns 93 experiential assets across a geographically diverse portfolio of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio comprises approximately 127 million square feet. It features approximately 60,300 hotel rooms and over 500 restaurants, bars, nightclubs, and sportsbooks.

Its properties are occupied by industry-leading gaming, leisure, and hospitality operators under long-term, triple-net lease agreements. VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors
including:

Bowlero
Cabot
Canyon Ranch
Chelsea Piers
Great Wolf Resorts
Homefield
Kalahari Resorts

VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.

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About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.