Most REITs increased dividends during 2014, indicating confidence in FFO growth. Improved profitability makes additional dividend increases likely.
Health Care REITs offer attractive yields of 4.9% on average. Industrial REITs now yield 4.4% (down due to stock price rebound), while Office REITs yield 3.5% on average. Yields for Residential REITs declined to 3.3% as stocks rallied. Retail REITs yield 4.1% and Specialty REITs yield 3.9% on average. Despite dividend increases, Hotel REITs are still the lowest yielding sector at 2.8%. Financial REITs offer income investors the highest yield, at 7.7% on average.
Variability in yield for each sector is greater than shown here. Average yield for all REITs as of November, 2014 is 4.1%.
REIT Growth and Income Monitor covers 132 REITs with total market cap of $816 billion, as of the end of November, 2014.
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