Don’t we all love dividend stocks? A little extra income each quarter can go a long way, especially if the stock has a high yield. Dividends can offer a solid income stream in retirement and increase the total returns (capital gains, interest, dividends, and distributions earned over the long term)of your investments.
With thousands of stocks trading in the market, it can become overwhelming to pick the right one, especially if you’re on the hunt for yield. But if you’re looking for steady monthly income and a high yield, you should consider investing in real estate investment trusts (REITs).
REITs present an opportunity to enter the real estate industry without a huge investment. REITs offer a high yield and carry little risk. As a rule, REITs must distribute 90% of their pre-tax income as dividends to shareholders. This requirement ensures steady income for investors. Here are 3 dividend REITs with a yield over 8%.
Apple Hospitality REIT
Dividend yield: 8.34%
Apple Hospitality REIT (NYSE: APLE) holds the largest portfolio of upscale hotels across the United States. Its portfolio consists of 224 hotels across 37 states, including over 100 Marriott and Hilton-branded hotels. It has properties across different states and has become a familiar name for anyone who stays at the Marriot or Hilton hotels.
The REIT pays monthly dividends and has a yield of 8.34%. The stock is exchanging hands for $11 and is down 23% year to date.
The management is working on reducing operating expenses and improving efficiency. It also aims to swap the older hotels for newer ones to improve the occupancy rates. In the second quarter, its EPS fell short of expectations, and the net income dropped 13.9% with a 9.3% drop in operating income. Despite this, the company maintained the monthly distribution and recently announced a dividend of $0.08.
Apple Hospitality REIT is on an expansion program and has a capital allocation strategy that could benefit the business in the long term. It expects modest improvement in consumer sentiment in the coming quarters. While investors should not expect an immediate upside, the company stands out among dividend payers with a solid yield. Cantor Fitzgerald has initiated coverage of the REIT with an “Overweight” rating.
Global Medical REIT
Dividend yield: 9.22%
Global Medical REIT (NYSE: GMRE) is a healthcare REIT that owns and operates over 180 properties and has more than 5.2 million net leasable square feet of specialized facilities. The REIT’s most recent occupancy rate was 94.5%.
It makes money by leasing space in the facility to healthcare systems under triple-net leases. This ensures that the tenants cover taxes, insurance, and maintenance costs while leaving a higher income for the REIT. This generates a predictable stream of rental income.
The demand for healthcare services is going to grow in the coming years, and Global Medical is in a strong position to benefit from the same. It is also expanding its portfolio and investing in new properties to meet the rising demand of the industry. Since its tenants are healthcare systems, it is recession-resistant, and the threat of nonpayment of rent is minimal.
In the second quarter results, the REIT beat estimates and reported funds from operations of $14.3 million. Its revenue came in at $37.9 million, up 10.7% year over year, and the net loss for the quarter was $0.8 million. In the quarter, the company completed the disposition of a medical facility and received gross proceeds of $1.4 billion. The adjusted funds from operation amounted to $16.6 million.
Exchanging hands for $32.55, the REIT is down 14.23% year-to-date. It has a dividend yield of 9.22% and it recently declared a dividend of $0.75. Citizens JMP recently upgraded the stock to “Outperform” with a price target of $40.
AGNC Investment
Dividend yield: 14.52%
AGNC Investment (NASDAQ: AGNC) provides private capital to the housing market in the United States, thus enhancing liquidity across the residential real estate mortgage market. It has a juicy yield of 14.30% and invests in agency residential mortgage-backed securities. The protection makes it a low-risk investment, but AGNC boosts its return potential by investing in mortgage-backed securities on a leveraged basis through repurchase agreements.
The REIT buys debt from the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), which are both government-sponsored enterprises. While it has a high risk, it also has the potential of a higher return. It pays a monthly dividend and recently declared $0.12 per share.
This REIT works differently from the other two mentioned here. AGNC is not subject to the management, overhead, and liability costs associated with real estate operations. This allows it to maintain a high profit margin. Piper Sandler has a buy rating on the stock with a price target of $10.50 while Keefe, Bruyette & Woods has an outperform rating.
For the second quarter, the REIT reported earnings of $0.38 per share, missing estimates. However, investors must remember that the broad market outlook has an impact on its performance. Exchanging hands for $9.92, this REIT below $10 can be a smart investment choice. It has gained 6.90% in 2025, 26% in three years and 32% in five years.
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