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Top U.S. Real Estate Dividend Stocks
UPDATED Jun 29, 2022
What are the best U.S. Real Estate Dividend Stocks?
According to our Simply Wall St analysis these are the best U.S. Real Estate dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.
Our criteria to find Top Dividend Companies
High Yield
- Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
- Yields vary between markets, so we focus on the top dividend payers in each market.
What do we look for?
- Is the yield in the top 25% of the market's dividend payers.
Consistent Dividends
- Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
- If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.
What do we look for?
- Has the dividend been stable over the last 10 years.
- Has the dividend grown over the last 10 years.
Dividend Cover
- Ideally the company doesn't pay out all of its earnings, neglecting future growth.
- If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.
What do we look for?
- Are dividends covered by earnings.
- Are dividends forecast to be covered by earnings in the future.
Healthy Balance Sheet
- Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.
What do we look for?
- Does the company have a manageable level of debt.
- Is the company able to cover its interest repayments.
2 companies meet this criteria in the U.S. market
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities.
Dividend Criteria
Earnings Coverage
Future Dividend Coverage
High Dividend: IIPR's dividend (6.33%) is in the top 25% of dividend payers in the US market (4.25%)
Notable Dividend
Growing Dividend
Stable Dividend
Rewards
Trading at 79.6% below our estimate of its fair value
Earnings are forecast to grow 23.43% per year
Earnings have grown 71.9% per year over the past 5 years
Risks
Shareholders have been diluted in the past year
NewLake Capital Partners is a leading provider of real estate capital to state-licensed cannabis operators.
Dividend Criteria
Earnings Coverage
High Dividend: NLCP's dividend (6.98%) is in the top 25% of dividend payers in the US market (4.25%)
Notable Dividend
Future Dividend Coverage
Growing Dividend
Stable Dividend
Rewards
Trading at 88.7% below our estimate of its fair value
Earnings are forecast to grow 47.01% per year
Became profitable this year
Risks
No risks detected for NLCP from our risks checks.