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 -1.04%  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 , Apple /zigman2/quotes/202934861/composite AAPL +2.44% , Amazon /zigman2/quotes/210331248/composite AMZN -8.43% , Netflix /zigman2/quotes/202353025/composite NFLX -0.27%  and Google holding company Alphabet /zigman2/quotes/205453964/composite GOOG -3.29%   /zigman2/quotes/202490156/composite GOOGL -2.75% .

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 -3.35%  — 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

4,136.48

-43.28 -1.04%

Volume: 0.00

Feb. 3, 2023 4:54p

/zigman2/quotes/202934861/composite

Add to watchlist AAPL

Apple Inc.

US : U.S.: Nasdaq

$ 154.50

+3.68 +2.44%

Volume: 154.36M

Feb. 3, 2023 4:00p

P/E Ratio

26.25

Dividend Yield

0.60%

Market Cap

$2444.49 billion

Rev. per Employee

$2.36M

/zigman2/quotes/210331248/composite

Add to watchlist AMZN

Amazon.com Inc.

US : U.S.: Nasdaq

$ 103.39

-9.52 -8.43%

Volume: 144.37M

Feb. 3, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$1059.46 billion

Rev. per Employee

$333,539

/zigman2/quotes/202353025/composite

Add to watchlist NFLX

Netflix Inc.

US : U.S.: Nasdaq

$ 365.90

-0.99 -0.27%

Volume: 9.40M

Feb. 3, 2023 4:00p

P/E Ratio

36.76

Dividend Yield

N/A

Market Cap

$162.95 billion

Rev. per Employee

$2.47M

/zigman2/quotes/205453964/composite

Add to watchlist GOOG

Alphabet Inc. Cl C

US : U.S.: Nasdaq

$ 105.22

-3.58 -3.29%

Volume: 36.82M

Feb. 3, 2023 4:00p

P/E Ratio

23.45

Dividend Yield

N/A

Market Cap

$1358.74 billion

Rev. per Employee

$1.48M

/zigman2/quotes/202490156/composite

Add to watchlist GOOGL

Alphabet Inc. Cl A

US : U.S.: Nasdaq

$ 104.78

-2.96 -2.75%

Volume: 65.31M

Feb. 3, 2023 4:00p

P/E Ratio

23.35

Dividend Yield

N/A

Market Cap

$1358.74 billion

Rev. per Employee

$1.48M

/zigman2/quotes/208929343/composite

Add to watchlist IRM

Iron Mountain Inc.

US : U.S.: NYSE

$ 55.53

-1.10 -1.94%

Volume: 1.52M

Feb. 3, 2023 4:03p

P/E Ratio

32.72

Dividend Yield

4.46%

Market Cap

$16.14 billion

Rev. per Employee

$199,364

/zigman2/quotes/203054096/composite

Add to watchlist MAC

Macerich Co.

US : U.S.: NYSE

$ 13.94

-0.28 -1.97%

Volume: 1.56M

Feb. 3, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

4.88%

Market Cap

$5.99 billion

Rev. per Employee

$1.34M

/zigman2/quotes/202836571/composite

Add to watchlist KIM

Kimco Realty Corp.

US : U.S.: NYSE

$ 22.53

-0.54 -2.34%

Volume: 4.65M

Feb. 3, 2023 4:03p

P/E Ratio

60.45

Dividend Yield

4.08%

Market Cap

$13.93 billion

Rev. per Employee

$2.83M

/zigman2/quotes/200438029/composite

Add to watchlist WY

Weyerhaeuser Co.

US : U.S.: NYSE

$ 35.27

-0.44 -1.23%

Volume: 3.79M

Feb. 3, 2023 4:00p

P/E Ratio

14.00

Dividend Yield

2.04%

Market Cap

$25.96 billion

Rev. per Employee

$1.11M

/zigman2/quotes/206376229/composite

Add to watchlist VTR

Ventas Inc.

US : U.S.: NYSE

$ 52.60

-0.40 -0.75%

Volume: 1.70M

Feb. 3, 2023 4:03p

P/E Ratio

N/A

Dividend Yield

3.42%

Market Cap

$21.62 billion

Rev. per Employee

$9.45M

/zigman2/quotes/231028144/composite

Add to watchlist HCP

HashiCorp Inc. Cl A

US : U.S.: Nasdaq

$ 33.73

-3.55 -9.52%

Volume: 3.54M

Feb. 3, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$6.49 billion

Rev. per Employee

$236,013

/zigman2/quotes/200485564/composite

Add to watchlist WELL

Welltower Inc.

US : U.S.: NYSE

$ 75.82

-0.45 -0.59%

Volume: 1.65M

Feb. 3, 2023 4:03p

P/E Ratio

199.26

Dividend Yield

3.22%

Market Cap

$35.83 billion

Rev. per Employee

$12.16M

/zigman2/quotes/209746667/composite

Add to watchlist SPG

Simon Property Group Inc.

US : U.S.: NYSE

$ 129.81

-1.98 -1.50%

Volume: 1.39M

Feb. 3, 2023 4:00p

P/E Ratio

21.06

Dividend Yield

5.55%

Market Cap

$48.58 billion

Rev. per Employee

$1.58M

/zigman2/quotes/201760234/composite

Add to watchlist HST

Host Hotels & Resorts Inc.

US : U.S.: Nasdaq

$ 19.07

-0.16 -0.83%

Volume: 9.43M

Feb. 3, 2023 4:00p

P/E Ratio

16.95

Dividend Yield

2.52%

Market Cap

$13.64 billion

Rev. per Employee

$29.01M

/zigman2/quotes/200487782/composite

Add to watchlist O

Realty Income Corp.

US : U.S.: NYSE

$ 67.59

-0.27 -0.40%

Volume: 3.64M

Feb. 3, 2023 4:00p

P/E Ratio

63.20

Dividend Yield

4.41%

Market Cap

$42.39 billion

Rev. per Employee

$8.43M

/zigman2/quotes/202279720/composite

Add to watchlist PSA

Public Storage

US : U.S.: NYSE

$ 308.47

-2.99 -0.96%

Volume: 709,352

Feb. 3, 2023 4:00p

P/E Ratio

12.54

Dividend Yield

2.59%

Market Cap

$54.18 billion

Rev. per Employee

$693,682

/zigman2/quotes/207195881/composite

Add to watchlist VNO

Vornado Realty Trust

US : U.S.: NYSE

$ 24.85

-1.48 -5.62%

Volume: 3.75M

Feb. 3, 2023 4:00p

P/E Ratio

49.95

Dividend Yield

6.04%

Market Cap

$5.12 billion

Rev. per Employee

$550,290

/zigman2/quotes/202885080/composite

Add to watchlist CCI

Crown Castle Inc.

US : U.S.: NYSE

$ 145.97

-6.57 -4.31%

Volume: 2.62M

Feb. 3, 2023 4:00p

P/E Ratio

37.86

Dividend Yield

4.29%

Market Cap

$63.21 billion

Rev. per Employee

$1.40M

/zigman2/quotes/208985878/composite

Add to watchlist SLG

SL Green Realty Corp.

US : U.S.: NYSE

$ 41.83

-2.14 -4.87%

Volume: 1.33M

Feb. 3, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

7.77%

Market Cap

$2.80 billion

Rev. per Employee

$888,012

/zigman2/quotes/209821465/composite

Add to watchlist MAA

Mid-America Apartment Communities Inc.

US : U.S.: NYSE

$ 173.05

-1.06 -0.61%

Volume: 1.19M

Feb. 3, 2023 4:03p

P/E Ratio

31.57

Dividend Yield

3.24%

Market Cap

$20.53 billion

Rev. per Employee

$831,563

/zigman2/quotes/202056862/composite

Add to watchlist REG

Regency Centers Corp.

US : U.S.: Nasdaq

$ 66.81

-0.72 -1.07%

Volume: 644,779

Feb. 3, 2023 4:00p

P/E Ratio

25.21

Dividend Yield

3.89%

Market Cap

$11.48 billion

Rev. per Employee

$2.73M

/zigman2/quotes/206785129/composite

Add to watchlist DLR

Digital Realty Trust Inc.

US : U.S.: NYSE

$ 115.21

-4.71 -3.93%

Volume: 2.05M

Feb. 3, 2023 4:00p

P/E Ratio

23.64

Dividend Yield

4.24%

Market Cap

$33.13 billion

Rev. per Employee

$1.62M

/zigman2/quotes/208054924/composite

Add to watchlist EXR

Extra Space Storage Inc.

US : U.S.: NYSE

$ 163.13

-1.98 -1.20%

Volume: 938,892

Feb. 3, 2023 4:02p

P/E Ratio

23.71

Dividend Yield

3.68%

Market Cap

$23.02 billion

Rev. per Employee

$432,897

/zigman2/quotes/209177534/composite

Add to watchlist AIV

Apartment Investment & Management Co.

US : U.S.: NYSE

$ 7.71

-0.09 -1.15%

Volume: 602,488

Feb. 3, 2023 4:00p

P/E Ratio

4.27

Dividend Yield

21.27%

Market Cap

$1.17 billion

Rev. per Employee

$3.09M

/zigman2/quotes/201241431/composite

Add to watchlist AVB

Avalonbay Communities Inc.

US : U.S.: NYSE

$ 180.25

-4.25 -2.30%

Volume: 936,475

Feb. 3, 2023 4:03p

P/E Ratio

20.50

Dividend Yield

3.53%

Market Cap

$25.22 billion

Rev. per Employee

$875,287

/zigman2/quotes/202394259/composite

Add to watchlist FRT

Federal Realty Investment Trust

US : U.S.: NYSE

$ 113.04

-1.04 -0.91%

Volume: 630,120

Feb. 3, 2023 4:00p

P/E Ratio

24.05

Dividend Yield

3.82%

Market Cap

$9.22 billion

Rev. per Employee

$3.33M

/zigman2/quotes/205190279/composite

Add to watchlist EQR

Equity Residential

US : U.S.: NYSE

$ 64.73

-1.62 -2.44%

Volume: 1.82M

Feb. 3, 2023 4:00p

P/E Ratio

21.33

Dividend Yield

3.86%

Market Cap

$25.29 billion

Rev. per Employee

$1.11M

/zigman2/quotes/200760603/composite

Add to watchlist UDR

UDR Inc.

US : U.S.: NYSE

$ 43.38

-1.03 -2.32%

Volume: 1.89M

Feb. 3, 2023 4:00p

P/E Ratio

88.62

Dividend Yield

3.50%

Market Cap

$14.12 billion

Rev. per Employee

$1.19M

/zigman2/quotes/206543290/composite

Add to watchlist ARE

Alexandria Real Estate Equities Inc.

US : U.S.: NYSE

$ 167.79

-3.03 -1.77%

Volume: 720,713

Feb. 3, 2023 4:00p

P/E Ratio

53.50

Dividend Yield

2.88%

Market Cap

$29.04 billion

Rev. per Employee

$4.37M

/zigman2/quotes/203540753/composite

Add to watchlist BXP

Boston Properties Inc.

US : U.S.: NYSE

$ 75.48

-2.89 -3.69%

Volume: 1.69M

Feb. 3, 2023 4:00p

P/E Ratio

13.98

Dividend Yield

5.19%

Market Cap

$13.08 billion

Rev. per Employee

$4.18M

/zigman2/quotes/200785374/composite

Add to watchlist PLD

Prologis Inc.

US : U.S.: NYSE

$ 131.62

-2.87 -2.13%

Volume: 3.30M

Feb. 3, 2023 4:03p

P/E Ratio

30.63

Dividend Yield

2.40%

Market Cap

$124.30 billion

Rev. per Employee

$2.91M

/zigman2/quotes/207865118/composite

Add to watchlist ESS

Essex Property Trust Inc.

US : U.S.: NYSE

$ 230.34

-6.59 -2.78%

Volume: 732,067

Feb. 3, 2023 4:02p

P/E Ratio

41.75

Dividend Yield

3.82%

Market Cap

$15.44 billion

Rev. per Employee

$889,714

/zigman2/quotes/208927761/composite

Add to watchlist EQIX

Equinix Inc.

US : U.S.: Nasdaq

$ 733.00

-19.98 -2.65%

Volume: 425,754

Feb. 3, 2023 4:00p

P/E Ratio

95.88

Dividend Yield

1.69%

Market Cap

$67.83 billion

Rev. per Employee

$649,010

/zigman2/quotes/200890312/composite

Add to watchlist AMT

American Tower REIT

US : U.S.: NYSE

$ 222.06

-5.33 -2.34%

Volume: 2.49M

Feb. 3, 2023 4:00p

P/E Ratio

35.24

Dividend Yield

2.64%

Market Cap

$103.39 billion

Rev. per Employee

$1.64M

/zigman2/quotes/208868148/composite

Add to watchlist CBRE

CBRE Group Inc. Cl A

US : U.S.: NYSE

$ 87.14

-1.40 -1.58%

Volume: 1.14M

Feb. 3, 2023 4:03p

P/E Ratio

14.39

Dividend Yield

N/A

Market Cap

$27.53 billion

Rev. per Employee

$296,990

/zigman2/quotes/208397406/composite

Add to watchlist SBAC

SBA Communications Corp.

US : U.S.: Nasdaq

$ 297.77

-10.32 -3.35%

Volume: 639,937

Feb. 3, 2023 4:00p

P/E Ratio

80.18

Dividend Yield

0.95%

Market Cap

$32.15 billion

Rev. per Employee

$1.59M

/zigman2/quotes/208397406/composite

Add to watchlist SBAC

SBA Communications Corp.

US : U.S.: Nasdaq

$ 297.77

-10.32 -3.35%

Volume: 639,937

Feb. 3, 2023 4:00p

P/E Ratio

80.18

Dividend Yield

0.95%

Market Cap

$32.15 billion

Rev. per Employee

$1.59M