Top 5 Dividend REITs for Long Term Investors - Buy and Hold Dividends | Summary and Q&A

TL;DR

This video discusses five dividend-paying REITs that could be great long-term investments for dividend investors.

Key Insights

• 🍉 Data center REITs like QTS and Cyrus One can provide long-term growth opportunities due to the increasing demand for data storage.
• ❓ Public Storage is a consistent dividend payer, appealing to income-focused investors.
• 🙃 Gladstone Land Corporation's focus on owning farmland offers stability and growth potential in the agricultural sector.
• 🧘 Alexandria Real Estate Equities' leasing of properties to specialized industries positions it well for long-term success.
• 🥳 Price to FFO ratio is important to consider when evaluating REITs for investment.
• 🤩 Growth and consistency in dividend payments are key factors to consider when selecting dividend-paying REITs for long-term investments.
• 🛩️ Smaller REITs can offer unique growth opportunities that may be overlooked.

Transcript

Hi, I'm Jimmy. In this video, we're gonna look at five dividend paying REITs. That could be great long term investments for dividend investors, a REIT, just so we're all on the same page is short for real estate investment trust. And basically, it's a way to invest in real estate, but through the stock market. So the goal of this video is to see if... Read More

Questions & Answers

Q: What is a REIT and why should investors consider them?

A REIT, or real estate investment trust, allows investors to invest in real estate through the stock market. They can provide consistent dividends and potential long-term growth.

Q: Why did the video highlight smaller REITs like QTS and Gladstone Land Corporation?

Including smaller REITs offers potential growth opportunities that larger REITs may not have. It's important to consider different options and diversify a portfolio.

Q: How does a REIT's price to funds from operations (FFO) ratio affect its investment value?

Price to FFO provides a measure of valuation, similar to price to earnings or price to free cash flow. A lower ratio may suggest better pricing, but other factors, such as growth potential, should also be considered.

Q: What advantages do REITs have in terms of dividends?

REITs don't pay corporate income taxes if they distribute most of their profits to shareholders. This allows smaller or new REITs to offer attractive dividends.

Summary & Key Takeaways

• QTS Realty Trust (QTS) is a smaller REIT that develops, operates, and owns data centers, which have significant long-term growth opportunities.

• Digital Realty Trust (DLR) is a similar REIT to QTS but is a larger company with a higher funds from operations (FFO) ratio.

• Public Storage (PSA) is a REIT that owns numerous storage facilities and has consistently paid out dividends.

• Gladstone Land Corporation (LAND) is a conservative REIT that owns and rents out farmland to farmers.

• Cyrus One (CONE) is a larger REIT focusing on data centers and has shown steady dividend growth.

• Alexandria Real Estate Equities (ARE) leases properties to pharmaceutical, biotech, and personal care product companies, with a strong dividend history.