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

By Philip van Doorn, MarketWatch

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 -0.39%  over various periods. First, we’ll show total returns and then average annual returns.

Total returns through Feb. 15, except as indicated:

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:

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 -2.38% , Apple /zigman2/quotes/202934861/composite AAPL +0.48% , Amazon /zigman2/quotes/210331248/composite AMZN -1.68% , Netflix /zigman2/quotes/202353025/composite NFLX -6.15%  and Google holding company Alphabet /zigman2/quotes/205453964/composite GOOG -0.60%   /zigman2/quotes/202490156/composite GOOGL -0.67% .

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:

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 +1.69%  — doesn’t even pay a regular quarterly dividend.

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/zigman2/quotes/210599714/realtime

Add to watchlist SPX

S&P 500 Index

US : S&P US

2,986.20

-11.75 -0.39%

Volume: 1.99B

Oct. 18, 2019 5:08p

/zigman2/quotes/205064656/composite

Add to watchlist FB

Facebook Inc. Cl A

US : U.S.: Nasdaq

$ 185.85

-4.54 -2.38%

Volume: 16.88M

Oct. 18, 2019 4:00p

P/E Ratio

31.49

Dividend Yield

N/A

Market Cap

$530.22 billion

Rev. per Employee

$1.57M

/zigman2/quotes/202934861/composite

Add to watchlist AAPL

Apple Inc.

US : U.S.: Nasdaq

$ 236.41

+1.13 +0.48%

Volume: 24.38M

Oct. 18, 2019 4:00p

P/E Ratio

20.15

Dividend Yield

1.30%

Market Cap

$1068.38 billion

Rev. per Employee

$1.98M

/zigman2/quotes/210331248/composite

Add to watchlist AMZN

Amazon.com Inc.

US : U.S.: Nasdaq

$ 1,757.51

-29.97 -1.68%

Volume: 3.37M

Oct. 18, 2019 4:00p

P/E Ratio

72.92

Dividend Yield

N/A

Market Cap

$869.36 billion

Rev. per Employee

$359,671

/zigman2/quotes/202353025/composite

Add to watchlist NFLX

Netflix Inc.

US : U.S.: Nasdaq

$ 275.30

-18.05 -6.15%

Volume: 23.45M

Oct. 18, 2019 4:00p

P/E Ratio

87.87

Dividend Yield

N/A

Market Cap

$120.54 billion

Rev. per Employee

$2.22M

/zigman2/quotes/205453964/composite

Add to watchlist GOOG

Alphabet Inc. Cl C

US : U.S.: Nasdaq

$ 1,245.49

-7.58 -0.60%

Volume: 1.35M

Oct. 18, 2019 4:00p

P/E Ratio

25.14

Dividend Yield

N/A

Market Cap

$805.68 billion

Rev. per Employee

$1.39M

/zigman2/quotes/202490156/composite

Add to watchlist GOOGL

Alphabet Inc. Cl A

US : U.S.: Nasdaq

$ 1,244.41

-8.39 -0.67%

Volume: 1.58M

Oct. 18, 2019 4:00p

P/E Ratio

25.12

Dividend Yield

N/A

Market Cap

$804.98 billion

Rev. per Employee

$1.39M

/zigman2/quotes/208929343/composite

Add to watchlist IRM

Iron Mountain Inc.

US : U.S.: NYSE

$ 33.50

+0.73 +2.23%

Volume: 4.59M

Oct. 18, 2019 6:30p

P/E Ratio

32.96

Dividend Yield

7.30%

Market Cap

$9.62 billion

Rev. per Employee

$150,383

/zigman2/quotes/203054096/composite

Add to watchlist MAC

Macerich Co.

US : U.S.: NYSE

$ 27.40

-0.21 -0.76%

Volume: 1.30M

Oct. 18, 2019 6:30p

P/E Ratio

36.70

Dividend Yield

10.95%

Market Cap

$3.87 billion

Rev. per Employee

$1.33M

/zigman2/quotes/202836571/composite

Add to watchlist KIM

Kimco Realty Corp.

US : U.S.: NYSE

$ 20.92

+0.33 +1.60%

Volume: 3.09M

Oct. 18, 2019 6:30p

P/E Ratio

28.44

Dividend Yield

5.35%

Market Cap

$8.83 billion

Rev. per Employee

$2.16M

/zigman2/quotes/200438029/composite

Add to watchlist WY

Weyerhaeuser Co.

US : U.S.: NYSE

$ 28.28

+0.26 +0.93%

Volume: 3.50M

Oct. 18, 2019 6:30p

P/E Ratio

6,427

Dividend Yield

4.81%

Market Cap

$21.07 billion

Rev. per Employee

$803,871

/zigman2/quotes/206376229/composite

Add to watchlist VTR

Ventas Inc.

US : U.S.: NYSE

$ 72.86

+0.92 +1.28%

Volume: 1.53M

Oct. 18, 2019 6:30p

P/E Ratio

52.74

Dividend Yield

4.35%

Market Cap

$27.15 billion

Rev. per Employee

$7.49M

/zigman2/quotes/205497622/composite

Add to watchlist HCP

HCP Inc.

US : U.S.: NYSE

$ 37.39

+0.39 +1.05%

Volume: 2.17M

Oct. 18, 2019 6:30p

P/E Ratio

18.36

Dividend Yield

3.96%

Market Cap

$18.36 billion

Rev. per Employee

$9.19M

/zigman2/quotes/200485564/composite

Add to watchlist WELL

Welltower Inc.

US : U.S.: NYSE

$ 92.09

+0.91 +1.00%

Volume: 1.90M

Oct. 18, 2019 6:30p

P/E Ratio

103.04

Dividend Yield

3.78%

Market Cap

$37.32 billion

Rev. per Employee

$12.24M

/zigman2/quotes/209746667/composite

Add to watchlist SPG

Simon Property Group Inc.

US : U.S.: NYSE

$ 149.92

+1.11 +0.75%

Volume: 1.27M

Oct. 18, 2019 6:30p

P/E Ratio

21.39

Dividend Yield

5.47%

Market Cap

$46.18 billion

Rev. per Employee

$1.13M

/zigman2/quotes/201760234/composite

Add to watchlist HST

Host Hotels & Resorts Inc.

US : U.S.: NYSE

$ 16.44

+0.02 +0.12%

Volume: 4.99M

Oct. 18, 2019 6:30p

P/E Ratio

11.10

Dividend Yield

4.87%

Market Cap

$12.00 billion

Rev. per Employee

$30.02M

/zigman2/quotes/200487782/composite

Add to watchlist O

Realty Income Corp.

US : U.S.: NYSE

$ 79.47

+0.88 +1.12%

Volume: 1.22M

Oct. 18, 2019 6:30p

P/E Ratio

60.66

Dividend Yield

3.43%

Market Cap

$25.29 billion

Rev. per Employee

$8.15M

/zigman2/quotes/202279720/composite

Add to watchlist PSA

Public Storage

US : U.S.: NYSE

$ 241.55

+0.86 +0.36%

Volume: 1.61M

Oct. 18, 2019 6:30p

P/E Ratio

28.82

Dividend Yield

3.31%

Market Cap

$42.17 billion

Rev. per Employee

$518,910

/zigman2/quotes/207195881/composite

Add to watchlist VNO

Vornado Realty Trust

US : U.S.: NYSE

$ 62.42

-0.22 -0.35%

Volume: 705,886

Oct. 18, 2019 6:30p

P/E Ratio

4.15

Dividend Yield

4.23%

Market Cap

$11.91 billion

Rev. per Employee

$603,428

/zigman2/quotes/202885080/composite

Add to watchlist CCI

Crown Castle International Corp.

US : U.S.: NYSE

$ 144.06

+4.48 +3.21%

Volume: 3.13M

Oct. 18, 2019 6:30p

P/E Ratio

72.70

Dividend Yield

3.33%

Market Cap

$59.89 billion

Rev. per Employee

$1.07M

/zigman2/quotes/208985878/composite

Add to watchlist SLG

SL Green Realty Corp.

US : U.S.: NYSE

$ 80.44

-0.53 -0.65%

Volume: 937,257

Oct. 18, 2019 6:30p

P/E Ratio

39.54

Dividend Yield

4.23%

Market Cap

$6.63 billion

Rev. per Employee

$1.44M

/zigman2/quotes/209821465/composite

Add to watchlist MAA

Mid-America Apartment Communities Inc.

US : U.S.: NYSE

$ 135.15

+1.07 +0.80%

Volume: 427,242

Oct. 18, 2019 6:30p

P/E Ratio

65.27

Dividend Yield

2.84%

Market Cap

$15.41 billion

Rev. per Employee

$616,491

/zigman2/quotes/202056862/composite

Add to watchlist REG

Regency Centers Corp.

US : U.S.: Nasdaq

$ 68.82

+0.35 +0.51%

Volume: 1.11M

Oct. 18, 2019 4:00p

P/E Ratio

40.40

Dividend Yield

3.40%

Market Cap

$11.53 billion

Rev. per Employee

$2.53M

/zigman2/quotes/206785129/composite

Add to watchlist DLR

Digital Realty Trust Inc.

US : U.S.: NYSE

$ 132.98

+1.21 +0.92%

Volume: 813,074

Oct. 18, 2019 6:30p

P/E Ratio

122.02

Dividend Yield

3.25%

Market Cap

$27.71 billion

Rev. per Employee

$1.97M

/zigman2/quotes/208054924/composite

Add to watchlist EXR

Extra Space Storage Inc.

US : U.S.: NYSE

$ 114.24

-0.06 -0.05%

Volume: 906,863

Oct. 18, 2019 6:30p

P/E Ratio

33.89

Dividend Yield

3.15%

Market Cap

$14.78 billion

Rev. per Employee

$332,467

/zigman2/quotes/209177534/composite

Add to watchlist AIV

Apartment Investment & Management Co.

US : U.S.: NYSE

$ 54.48

+0.45 +0.83%

Volume: 678,950

Oct. 18, 2019 6:30p

P/E Ratio

23.89

Dividend Yield

2.86%

Market Cap

$8.11 billion

Rev. per Employee

$923,914

/zigman2/quotes/201241431/composite

Add to watchlist AVB

Avalonbay Communities Inc.

US : U.S.: NYSE

$ 220.17

+1.09 +0.50%

Volume: 573,272

Oct. 18, 2019 6:30p

P/E Ratio

33.31

Dividend Yield

2.76%

Market Cap

$30.75 billion

Rev. per Employee

$738,060

/zigman2/quotes/202394259/composite

Add to watchlist FRT

Federal Realty Investment Trust

US : U.S.: NYSE

$ 138.04

+0.29 +0.21%

Volume: 372,936

Oct. 18, 2019 6:30p

P/E Ratio

41.82

Dividend Yield

3.04%

Market Cap

$10.35 billion

Rev. per Employee

$3.04M

/zigman2/quotes/205190279/composite

Add to watchlist EQR

Equity Residential

US : U.S.: NYSE

$ 88.37

+0.62 +0.71%

Volume: 1.64M

Oct. 18, 2019 6:30p

P/E Ratio

52.18

Dividend Yield

2.57%

Market Cap

$32.77 billion

Rev. per Employee

$948,115

/zigman2/quotes/200760603/composite

Add to watchlist UDR

UDR Inc.

US : U.S.: NYSE

$ 49.80

+0.39 +0.79%

Volume: 1.92M

Oct. 18, 2019 6:30p

P/E Ratio

87.00

Dividend Yield

2.75%

Market Cap

$14.58 billion

Rev. per Employee

$828,095

/zigman2/quotes/200302802/composite

Add to watchlist DRE

Duke Realty Corp.

US : U.S.: NYSE

$ 33.97

+0.03 +0.09%

Volume: 1.72M

Oct. 18, 2019 6:30p

P/E Ratio

52.80

Dividend Yield

2.53%

Market Cap

$12.28 billion

Rev. per Employee

$2.37M

/zigman2/quotes/206543290/composite

Add to watchlist ARE

Alexandria Real Estate Equities Inc.

US : U.S.: NYSE

$ 156.01

+0.70 +0.45%

Volume: 432,004

Oct. 18, 2019 6:30p

P/E Ratio

44.66

Dividend Yield

2.56%

Market Cap

$17.78 billion

Rev. per Employee

$3.72M

/zigman2/quotes/203540753/composite

Add to watchlist BXP

Boston Properties Inc.

US : U.S.: NYSE

$ 128.36

+0.70 +0.55%

Volume: 507,098

Oct. 18, 2019 6:30p

P/E Ratio

37.53

Dividend Yield

2.96%

Market Cap

$19.84 billion

Rev. per Employee

$3.57M

/zigman2/quotes/200785374/composite

Add to watchlist PLD

Prologis Inc.

US : U.S.: NYSE

$ 89.61

+0.45 +0.50%

Volume: 1.73M

Oct. 18, 2019 6:30p

P/E Ratio

32.02

Dividend Yield

2.37%

Market Cap

$56.56 billion

Rev. per Employee

$1.73M

/zigman2/quotes/207865118/composite

Add to watchlist ESS

Essex Property Trust Inc.

US : U.S.: NYSE

$ 331.30

+2.64 +0.80%

Volume: 234,855

Oct. 18, 2019 6:30p

P/E Ratio

53.32

Dividend Yield

2.35%

Market Cap

$21.78 billion

Rev. per Employee

$775,754

/zigman2/quotes/208927761/composite

Add to watchlist EQIX

Equinix Inc.

US : U.S.: Nasdaq

$ 576.41

+4.57 +0.80%

Volume: 250,904

Oct. 18, 2019 4:00p

P/E Ratio

95.43

Dividend Yield

1.71%

Market Cap

$48.89 billion

Rev. per Employee

$643,674

/zigman2/quotes/200890312/composite

Add to watchlist AMT

American Tower REIT

US : U.S.: NYSE

$ 229.09

+3.18 +1.41%

Volume: 1.54M

Oct. 18, 2019 6:30p

P/E Ratio

69.42

Dividend Yield

1.58%

Market Cap

$101.42 billion

Rev. per Employee

$1.48M

/zigman2/quotes/208868148/composite

Add to watchlist CBRE

CBRE Group Inc. Cl A

US : U.S.: NYSE

$ 52.21

-0.14 -0.27%

Volume: 1.84M

Oct. 18, 2019 6:30p

P/E Ratio

16.66

Dividend Yield

N/A

Market Cap

$17.56 billion

Rev. per Employee

$237,112

/zigman2/quotes/208397406/composite

Add to watchlist SBAC

SBA Communications Corp.

US : U.S.: Nasdaq

$ 244.10

+4.06 +1.69%

Volume: 940,184

Oct. 18, 2019 4:00p

P/E Ratio

212.26

Dividend Yield

0.61%

Market Cap

$27.61 billion

Rev. per Employee

$1.39M

/zigman2/quotes/208397406/composite

Add to watchlist SBAC

SBA Communications Corp.

US : U.S.: Nasdaq

$ 244.10

+4.06 +1.69%

Volume: 940,184

Oct. 18, 2019 4:00p

P/E Ratio

212.26

Dividend Yield

0.61%

Market Cap

$27.61 billion

Rev. per Employee

$1.39M