Ex-dividend in June: Top REITs with a dividend of 6%! | news

Are you still enjoying June from top REITs that even have an ex-dividend date in June? This is an exciting opportunity. Today let’s look at two names that boast 6% dividends and the prospect of much more.

Yield growth in particular is also a priority. Here is my best choice, which is interesting now.

Store capital: Top REIT with 6% dividend!

A first top REIT, now making headlines with a dividend of 6% before the ex-dividend date, is store capital (WKN: A12CRU). And yes, it’s Warren Buffett REIT that Oracle of Omaha has put some of his money in as well. This is definitely a hallmark of quality.

Store Capital currently pays out $ 0.385 per quarter to investors. At the current stock price of $ 25.79, this equates to a compounded dividend of 6% per annum. Definitely an exciting value that should also be very sustainable. Finally, funds are expected from operations per. share for the current year to be at least $ 2.20. With a payout percentage of 74.5%, there is the possibility of further dividend increases.

However, Store Capital is a top REIT, primarily because management regularly increases payouts. Last year, the yield grew by 7% year over year. Maybe growth like this does not happen every year. But there has always been a more normal inflation adjustment with a dividend growth of around 3% to 4%. Even with a price-to-FFO ratio currently below 12, this real estate investment fund can certainly still be attractive ahead of the ex-dividend date!

Innovative industrial properties: Interesting!

Owner too Innovative industrial properties (WKN: A2DGXH) as a top REIT with strong growth currently above 6% yield. With a current annual dividend of $ 1.75, it’s all 6.46%. This means that the market is currently pricing in a greater risk here.

Admittedly, that may also be the case. Short sellers criticize the business model as illegitimate support for the cannabis industry. Nevertheless, growth continues happily. It shows an acquisition in June, and authorities also do not appear to be jumping on this suspected illegal activity yet. As such, these may be indicators that these concerns are exaggerated and we are now simply seeing a discount ahead of the ex-dividend date.

Innovative Industrial Properties is a top REIT with strong growth due to its cannabis focus. Funds from operations had last increased by 38% year over year. Yields are also growing regularly, but no longer every quarter. But with a yield of over 6%, the starting point is still interesting.

A price-FFO ratio of currently 13.2 also suggests a favorable valuation. Or a top REIT that is definitely worth revisiting prior to the ex-dividend date with a dividend of over 6%.

Article Ex-dividend in June: top REITs with a dividend of 6%! first appeared on The Motley Fool Germany.

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Vincent owns shares in Innovative Industrial Properties and Store Capital. The Motley Fool owns shares in and recommends Innovative Industrial Properties and recommends Store Capital.

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