9 stocks with dividend yields over 4% in a sector that often beats the broader market Deep Dive

Bloomberg

Shares of Iron Mountain have a dividend yield of nearly 7%.

Real estate investment trusts, or REITs, are usually considered income investments, so some investors panic and sell them when interest rates are rising. But the Federal Reserve’s recent change in policy should put that fear to rest.

Meanwhile, you can see that REITs have performed very well compared to the broader stock market in the long run. We list S&P 500 REITs, sorted by yield, below.

We pointed out in August that a knee-jerk reaction to avoid REITs when interest rates are rising isn’t supported by performance. A rising-rate environment is typically one that also features significant economic growth, which means a REITs’ rental income and earnings will rise. This tends to offset negative price action from rising rates.

The Fed’s recent change in direction may have eliminated the usual fear of interest-rate increases, at least for now.

And the silver lining is that REITs as a group have measured up well against the broader stock market over long periods. Here’s how the S&P 500 REIT industry group’s total returns (with reinvested dividends) have compared to the entire S&P 500 /zigman2/quotes/210599714/realtime SPX +0.08% over various periods. First, we’ll show total returns and then average annual returns.

Total returns through Feb. 15, except as indicated:

	S&P 500 REITs	S&P 500
2019	12.7%	11.0%
2018	-2.1%	-4.4%
2 years	20.3%	22.9%
3 years	42.3%	58.3%
5 years	61.8%	67.3%
10 years	388.2%	314.5%
15 years	275.6%	230.2%
Source: FactSet

You can see that the 10-year figures are distorted because in early 2009, we were close to the market bottom that followed the deep declines experienced during the credit crisis.

It might be more useful to compare average annual total returns over long periods:

	S&P 500 REITs	S&P 500
2 years	9.7%	10.9%
3 years	12.3%	16.5%
5 years	10.1%	10.8%
10 years	18.4%	15.3%
15 years	9.2%	8.3%
Source: FactSet

The 15-year figures are particularly interesting. Despite the 2008-2009 crisis, the REITs have performed better than the S&P 500, even though the full index is so heavily weighted to large tech stocks, such as Facebook /zigman2/quotes/205064656/composite FB +1.66% , Apple /zigman2/quotes/202934861/composite AAPL +0.51% , Amazon /zigman2/quotes/210331248/composite AMZN +0.57% , Netflix /zigman2/quotes/202353025/composite NFLX +1.25% and Google holding company Alphabet /zigman2/quotes/205453964/composite GOOG +0.47% /zigman2/quotes/202490156/composite GOOGL +0.64% .

S&P 500 REITs: yields and returns

While we have compared total returns with dividends reinvested, you won’t be reinvesting if you are buying REIT shares for income.

It is very important to consider your investment objective. Even if you are not investing in REITs for income, they can help you diversify your portfolio. You should also consider a REIT’s particular specialty and growth prospects when deciding whether to invest.

Here are all 32 REITs in the S&P 500, sorted by dividend yield:

Real estate investment trust	Ticker	Primary investing activity	Dividend yield - current	Average total return - 15 years
Iron Mountain Inc.	/zigman2/quotes/208929343/composite IRM	Document and data storage facilities	6.96%	8.6%
Macerich Co.	/zigman2/quotes/203054096/composite MAC	Commercial properties	6.87%	4.6%
Kimco Realty Corp.	/zigman2/quotes/202836571/composite KIM	Shopping centers	6.31%	2.9%
Weyerhaeuser Co.	/zigman2/quotes/200438029/composite WY	Timberland	5.32%	3.7%
Ventas Inc.	/zigman2/quotes/206376229/composite VTR	Senior housing and health care properties	4.86%	12.4%
HCP Inc.	/zigman2/quotes/231028144/composite HCP	Senior housing and health care properties	4.80%	7.2%
Welltower Inc.	/zigman2/quotes/200485564/composite WELL	Senior housing and health care properties	4.48%	11.3%
Simon Property Group Inc.	/zigman2/quotes/209746667/composite SPG	Shopping malls	4.36%	13.2%
Host Hotels & Resorts Inc.	/zigman2/quotes/201760234/composite HST	Hotels	4.29%	5.8%
Realty Income Corp.	/zigman2/quotes/200487782/composite O	Diverse commercial properties	3.86%	14.2%
Public Storage	/zigman2/quotes/202279720/composite PSA	Self-storage facilities	3.85%	13.8%
Vornado Realty Trust	/zigman2/quotes/207195881/composite VNO	Office buildings in New York, Chicago and San Francisco	3.84%	7.3%
Crown Castle International Corp	/zigman2/quotes/202885080/composite CCI	Cellular towers	3.75%	17.9%
SL Green Realty Corp.	/zigman2/quotes/208985878/composite SLG	Commercial properties in Manhattan, New York	3.71%	7.9%
Mid-America Apartment Communities Inc.	/zigman2/quotes/209821465/composite MAA	Apartment communities	3.69%	12.5%
Regency Centers Corp.	/zigman2/quotes/202056862/composite REG	Shopping centers	3.53%	7.4%
Digital Realty Trust Inc.	/zigman2/quotes/206785129/composite DLR	Data centers	3.51%	N/A
Extra Space Storage Inc.	/zigman2/quotes/208054924/composite EXR	Self-storage facilities	3.45%	N/A
Apartment Investment and Management Co. Class A	/zigman2/quotes/209177534/composite AIV	Apartment communities	3.14%	9.9%
AvalonBay Communities Inc.	/zigman2/quotes/201241431/composite AVB	Apartment communities	3.10%	13.6%
Federal Realty Investment Trust	/zigman2/quotes/202394259/composite FRT	Retail properties	3.01%	11.7%
Equity Residential	/zigman2/quotes/205190279/composite EQR	Rental apartment properties	2.95%	11.7%
UDR Inc.	/zigman2/quotes/200760603/composite UDR	Multifamily residential properties	2.89%	11.3%
Duke Realty Corp.	/zigman2/quotes/200302802/composite DRE	Industrial properties	2.89%	5.1%
Alexandria Real Estate Equities Inc.	/zigman2/quotes/206543290/composite ARE	Life sciences and technology office campuses	2.88%	8.9%
Boston Properties Inc.	/zigman2/quotes/203540753/composite BXP	Office properties	2.84%	11.2%
Prologis Inc.	/zigman2/quotes/200785374/composite PLD	Logistics and distribution facilities	2.70%	8.6%
Essex Property Trust Inc.	/zigman2/quotes/207865118/composite ESS	Multifamily residential properties	2.67%	14.4%
Equinix Inc.	/zigman2/quotes/208927761/composite EQIX	Data centers	2.34%	20.6%
American Tower Corp.	/zigman2/quotes/200890312/composite AMT	Communications infrastructure	1.89%	20.7%
CBRE Group Inc. Class A	/zigman2/quotes/208868148/composite CBRE	Services to the commercial real-estate industry	0.00%	N/A
SBA Communications Corp. Class A	/zigman2/quotes/208397406/composite SBAC	Wireless communications infrastructure	0.00%	29.3%
Source: FactSet

So a high dividend yield can be a very good thing if income is your objective. But as you can see, the best 15-year performer on the — SBA Communications Corp. /zigman2/quotes/208397406/composite SBAC -2.37% — doesn’t even pay a regular quarterly dividend.

Don’t miss: Stock picker Amy Zhang continues to outperform by enlisting volatility as her ‘friend’

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/zigman2/quotes/210599714/realtime

Add to watchlist SPX

S&P 500 Index

US : S&P US

4,662.85

+3.82 +0.08%

Volume: 0.00

Jan. 14, 2022 5:16p

/zigman2/quotes/205064656/composite

Add to watchlist FB

Meta Platforms Inc.

US : U.S.: Nasdaq

$ 331.90

+5.42 +1.66%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

23.70

Dividend Yield

N/A

Market Cap

$923.27 billion

Rev. per Employee

$1.92M

/zigman2/quotes/202934861/composite

Add to watchlist AAPL

Apple Inc.

US : U.S.: Nasdaq

$ 173.07

+0.88 +0.51%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

30.87

Dividend Yield

0.51%

Market Cap

$2826.99 billion

Rev. per Employee

$2.38M

/zigman2/quotes/210331248/composite

Add to watchlist AMZN

Amazon.com Inc.

US : U.S.: Nasdaq

$ 3,242.76

+18.48 +0.57%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

63.41

Dividend Yield

N/A

Market Cap

$1644.56 billion

Rev. per Employee

$352,824

/zigman2/quotes/202353025/composite

Add to watchlist NFLX

Netflix Inc.

US : U.S.: Nasdaq

$ 525.69

+6.49 +1.25%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

47.38

Dividend Yield

N/A

Market Cap

$232.86 billion

Rev. per Employee

$3.05M

/zigman2/quotes/205453964/composite

Add to watchlist GOOG

Alphabet Inc. Cl C

US : U.S.: Nasdaq

$ 2,795.73

+13.11 +0.47%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

26.93

Dividend Yield

N/A

Market Cap

$1853.59 billion

Rev. per Employee

$1.77M

/zigman2/quotes/202490156/composite

Add to watchlist GOOGL

Alphabet Inc. Cl A

US : U.S.: Nasdaq

$ 2,789.61

+17.87 +0.64%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

26.87

Dividend Yield

N/A

Market Cap

$1853.59 billion

Rev. per Employee

$1.77M

/zigman2/quotes/208929343/composite

Add to watchlist IRM

Iron Mountain Inc.

US : U.S.: NYSE

$ 44.77

-0.93 -2.04%

Volume: 0.00

Jan. 14, 2022 4:03p

P/E Ratio

20.43

Dividend Yield

5.53%

Market Cap

$12.96 billion

Rev. per Employee

$182,983

/zigman2/quotes/203054096/composite

Add to watchlist MAC

Macerich Co.

US : U.S.: NYSE

$ 17.78

-0.27 -1.50%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

N/A

Dividend Yield

3.37%

Market Cap

$3.96 billion

Rev. per Employee

$1.22M

/zigman2/quotes/202836571/composite

Add to watchlist KIM

Kimco Realty Corp.

US : U.S.: NYSE

$ 25.01

-0.22 -0.87%

Volume: 0.00

Jan. 14, 2022 4:03p

P/E Ratio

13.05

Dividend Yield

2.72%

Market Cap

$15.42 billion

Rev. per Employee

$2.50M

/zigman2/quotes/200438029/composite

Add to watchlist WY

Weyerhaeuser Co.

US : U.S.: NYSE

$ 40.98

-0.68 -1.63%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

12.39

Dividend Yield

1.66%

Market Cap

$30.70 billion

Rev. per Employee

$1.07M

/zigman2/quotes/206376229/composite

Add to watchlist VTR

Ventas Inc.

US : U.S.: NYSE

$ 52.93

+0.02 +0.04%

Volume: 0.00

Jan. 14, 2022 4:04p

P/E Ratio

100.74

Dividend Yield

3.40%

Market Cap

$21.73 billion

Rev. per Employee

$8.32M

/zigman2/quotes/231028144/composite

Add to watchlist HCP

HashiCorp Inc. Cl A

US : U.S.: Nasdaq

$ 66.69

-0.28 -0.42%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$11.93 billion

Rev. per Employee

N/A

/zigman2/quotes/200485564/composite

Add to watchlist WELL

Welltower Inc.

US : U.S.: NYSE

$ 87.51

-0.20 -0.23%

Volume: 0.00

Jan. 14, 2022 4:04p

P/E Ratio

1,402

Dividend Yield

2.79%

Market Cap

$38.09 billion

Rev. per Employee

$10.75M

/zigman2/quotes/209746667/composite

Add to watchlist SPG

Simon Property Group Inc.

US : U.S.: NYSE

$ 155.70

-7.29 -4.47%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

27.84

Dividend Yield

4.24%

Market Cap

$58.52 billion

Rev. per Employee

$1.49M

/zigman2/quotes/201760234/composite

Add to watchlist HST

Host Hotels & Resorts Inc.

US : U.S.: Nasdaq

$ 17.94

-0.13 -0.72%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$12.81 billion

Rev. per Employee

$13.25M

/zigman2/quotes/200487782/composite

Add to watchlist O

Realty Income Corp.

US : U.S.: NYSE

$ 71.50

-0.20 -0.28%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

56.32

Dividend Yield

4.14%

Market Cap

$40.45 billion

Rev. per Employee

$8.63M

/zigman2/quotes/202279720/composite

Add to watchlist PSA

Public Storage

US : U.S.: NYSE

$ 361.79

-2.59 -0.71%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

43.24

Dividend Yield

2.21%

Market Cap

$63.44 billion

Rev. per Employee

$601,954

/zigman2/quotes/207195881/composite

Add to watchlist VNO

Vornado Realty Trust

US : U.S.: NYSE

$ 46.28

-0.06 -0.13%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

N/A

Dividend Yield

4.58%

Market Cap

$9.52 billion

Rev. per Employee

$532,791

/zigman2/quotes/202885080/composite

Add to watchlist CCI

Crown Castle International Corp.

US : U.S.: NYSE

$ 184.15

-3.23 -1.72%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

60.80

Dividend Yield

3.19%

Market Cap

$79.59 billion

Rev. per Employee

$1.26M

/zigman2/quotes/208985878/composite

Add to watchlist SLG

SL Green Realty Corp.

US : U.S.: NYSE

$ 81.43

+0.12 +0.15%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

8.46

Dividend Yield

4.47%

Market Cap

$5.40 billion

Rev. per Employee

$1.11M

/zigman2/quotes/209821465/composite

Add to watchlist MAA

Mid-America Apartment Communities Inc.

US : U.S.: NYSE

$ 215.11

-3.80 -1.74%

Volume: 0.00

Jan. 14, 2022 4:04p

P/E Ratio

57.72

Dividend Yield

2.02%

Market Cap

$25.50 billion

Rev. per Employee

$687,023

/zigman2/quotes/202056862/composite

Add to watchlist REG

Regency Centers Corp.

US : U.S.: Nasdaq

$ 75.80

-1.24 -1.61%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

38.85

Dividend Yield

3.30%

Market Cap

$13.04 billion

Rev. per Employee

$2.63M

/zigman2/quotes/206785129/composite

Add to watchlist DLR

Digital Realty Trust Inc.

US : U.S.: NYSE

$ 155.88

-1.74 -1.10%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

65.87

Dividend Yield

2.98%

Market Cap

$44.24 billion

Rev. per Employee

$1.52M

/zigman2/quotes/208054924/composite

Add to watchlist EXR

Extra Space Storage Inc.

US : U.S.: NYSE

$ 203.61

-3.00 -1.45%

Volume: 0.00

Jan. 14, 2022 4:04p

P/E Ratio

37.72

Dividend Yield

2.46%

Market Cap

$28.43 billion

Rev. per Employee

$385,682

/zigman2/quotes/209177534/composite

Add to watchlist AIV

Apartment Investment & Management Co.

US : U.S.: NYSE

$ 7.27

+0.06 +0.83%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

N/A

Dividend Yield

22.56%

Market Cap

$1.11 billion

Rev. per Employee

$2.91M

/zigman2/quotes/201241431/composite

Add to watchlist AVB

Avalonbay Communities Inc.

US : U.S.: NYSE

$ 248.68

-2.39 -0.95%

Volume: 0.00

Jan. 14, 2022 4:03p

P/E Ratio

34.40

Dividend Yield

2.56%

Market Cap

$34.75 billion

Rev. per Employee

$729,293

/zigman2/quotes/202394259/composite

Add to watchlist FRT

Federal Realty Investment Trust

US : U.S.: NYSE

$ 132.86

-2.80 -2.06%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

43.93

Dividend Yield

3.22%

Market Cap

$10.54 billion

Rev. per Employee

$2.99M

/zigman2/quotes/205190279/composite

Add to watchlist EQR

Equity Residential

US : U.S.: NYSE

$ 90.83

-0.64 -0.70%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

33.62

Dividend Yield

2.65%

Market Cap

$35.23 billion

Rev. per Employee

$919,025

/zigman2/quotes/200760603/composite

Add to watchlist UDR

UDR Inc.

US : U.S.: NYSE

$ 58.58

-0.40 -0.68%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

317.51

Dividend Yield

2.48%

Market Cap

$28.93 billion

Rev. per Employee

$979,499

/zigman2/quotes/200302802/composite

Add to watchlist DRE

Duke Realty Corp.

US : U.S.: NYSE

$ 59.81

-0.40 -0.66%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

24.66

Dividend Yield

1.87%

Market Cap

$23.00 billion

Rev. per Employee

$3.16M

/zigman2/quotes/206543290/composite

Add to watchlist ARE

Alexandria Real Estate Equities Inc.

US : U.S.: NYSE

$ 210.28

+0.41 +0.20%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

31.95

Dividend Yield

2.19%

Market Cap

$33.62 billion

Rev. per Employee

$4.26M

/zigman2/quotes/203540753/composite

Add to watchlist BXP

Boston Properties Inc.

US : U.S.: NYSE

$ 125.08

-0.63 -0.50%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

61.19

Dividend Yield

3.13%

Market Cap

$21.54 billion

Rev. per Employee

$3.76M

/zigman2/quotes/200785374/composite

Add to watchlist PLD

Prologis Inc.

US : U.S.: NYSE

$ 152.74

-0.41 -0.27%

Volume: 0.00

Jan. 14, 2022 4:03p

P/E Ratio

59.40

Dividend Yield

1.65%

Market Cap

$116.20 billion

Rev. per Employee

$2.36M

/zigman2/quotes/207865118/composite

Add to watchlist ESS

Essex Property Trust Inc.

US : U.S.: NYSE

$ 343.96

-3.82 -1.10%

Volume: 0.00

Jan. 14, 2022 4:02p

P/E Ratio

50.07

Dividend Yield

2.43%

Market Cap

$23.17 billion

Rev. per Employee

$795,460

/zigman2/quotes/208927761/composite

Add to watchlist EQIX

Equinix Inc.

US : U.S.: Nasdaq

$ 746.76

-1.36 -0.18%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

157.22

Dividend Yield

1.54%

Market Cap

$67.24 billion

Rev. per Employee

$651,040

/zigman2/quotes/200890312/composite

Add to watchlist AMT

American Tower REIT

US : U.S.: NYSE

$ 250.62

-4.82 -1.89%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

45.61

Dividend Yield

2.08%

Market Cap

$114.14 billion

Rev. per Employee

$1.61M

/zigman2/quotes/208868148/composite

Add to watchlist CBRE

CBRE Group Inc. Cl A

US : U.S.: NYSE

$ 103.83

-1.85 -1.75%

Volume: 0.00

Jan. 14, 2022 4:02p

P/E Ratio

24.18

Dividend Yield

N/A

Market Cap

$34.75 billion

Rev. per Employee

$261,063

/zigman2/quotes/208397406/composite

Add to watchlist SBAC

SBA Communications Corp.

US : U.S.: Nasdaq

$ 326.27

-7.91 -2.37%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

123.93

Dividend Yield

0.71%

Market Cap

$35.49 billion

Rev. per Employee

$1.52M

/zigman2/quotes/208397406/composite

Add to watchlist SBAC

SBA Communications Corp.

US : U.S.: Nasdaq

$ 326.27

-7.91 -2.37%

Volume: 0.00

Jan. 14, 2022 4:00p

P/E Ratio

123.93

Dividend Yield

0.71%

Market Cap

$35.49 billion

Rev. per Employee

$1.52M

Philip van Doorn covers various investment and industry topics. He has previously worked as a senior analyst at TheStreet.com. He also has experience in community banking and as a credit analyst at the Federal Home Loan Bank of New York.