Investors who are interested in high-yield dividend stocks often worry about sacrificing price appreciation for yield or falling into “yield traps,” which are stocks at risk of having their dividends cut. One way to reduce these risks is by looking at recent performance compared to peers.
Three real estate investment trusts (REITs) with dividend yields over 8% have outperformed other high-yielding REITs in the past month. Global Medical REIT Inc. (NYSE:GMRE) is a net-lease health care REIT based in Bethesda, MD. It owns and operates 185 properties leased to health care systems and physician groups throughout the U.S. Global Medical REIT had the best performance among high-yielding REITs, with a total gain of 6.81% over the past month.
Omega Healthcare Investors Inc. (NYSE:OHI) is a triple-net equity health care REIT based in Hunt Valley, MD. It provides financing, capital, and triple-net leasing to senior housing and skilled nursing facilities in the U.S. and the United Kingdom. Omega Healthcare Investors was the second-best-performing REIT with a dividend yield over 8%, with a total gain of 4.41% in the past month.
Easterly Government Properties Inc (NYSE:DEA) is an office REIT that leases properties to government agencies through the General Services Administration. Easterly Government Properties had a total return of 4.13% over the past four weeks, making it the third-best-performing REIT with a dividend yield over 8%.
It’s important to note that 21 REITs with dividend yields of 8% or higher were considered for this comparison. Mortgage REITs (mREITs) were excluded due to their high volatility and tendency to cut dividends when yields rise. The returns mentioned are from the close on May 23 to the close on June 21.