The Best REIT Stocks to Invest $1,000 in Right Now

Core Viewpoint - Real estate investment trusts (REITs) provide attractive dividend yields of 4% or more, with potential for double-digit growth, making them appealing for investors looking for income and growth opportunities [1][2]. Group 1: Overview of REITs - REITs are publicly traded companies that acquire and lease real estate, distributing at least 90% of their taxable income to shareholders as nonqualified dividends [2]. - They are particularly suitable for individual investors who may lack the resources to invest directly in commercial properties [2]. Group 2: Featured REITs Realty Income - Realty Income is known as the "monthly dividend company," paying monthly dividends and managing over 15,000 properties across the U.S. and Europe, focusing on net leases for single-tenant retail properties [4]. - The current dividend yield is approximately 5.5%, with a payout ratio of 76% of 2024 funds from operations (FFO), and it has a history of 32 consecutive years of dividend payments [5][6]. - The stock trades at 14 times its FFO, indicating a solid value for a reliable REIT [6]. Rexford Industrial Realty - Rexford Industrial Realty manages over 400 industrial properties in Southern California, benefiting from the region's strong economy [7]. - The dividend yield has reached a record high of 5.3%, with a payout ratio of 73%, and the company has consistently raised its dividend since its IPO in 2014 [8][9]. - The FFO has grown by 16% annually over the last five years, and the stock trades at just over 14 times its FFO, offering a blend of growth and yield [9]. Prologis - Prologis focuses on properties for supply chain and logistics, with major tenants including Amazon and FedEx, and its properties are strategically located near transportation hubs [10]. - The stock yields 4%, with an annual FFO growth of 12% over the past five years, and a modest payout ratio of 72% [11][12]. - Prologis has raised its dividend for 11 consecutive years, with an average annual increase of 13%, and is well-positioned to benefit from ongoing e-commerce growth [12][13].