Top Dividend-Paying REITs to Consider in Volatile Markets

As market turbulence continues, particularly stemming from recent tariff policies, many investors are shifting their focus towards dividend-paying stocks. Real estate investment trusts (REITs) are gaining traction for their attractive dividends, positioning them as a potential hedge against ongoing volatility.

Market Overview

Since the imposition of 10% duties on various imports announced by former President Donald Trump, the stock market has experienced significant sell-offs. Notably, the Nasdaq Composite index has declined by 19% since its peak on February 19, 2025. Conversely, the MSCI US REIT Index has exhibited more resilience, showing a comparatively modest drop of over 7% during the same period.

Performance of REIT Sectors

According to Bank of America’s recent analysis, within the REIT sector, certain categories have outperformed others. Specifically, healthcare, residential, tower, and net lease sectors have shown greater stability, whereas retail, data centers, and office spaces have lagged during this downturn.

Five Promising REITs

Investment analyst Jeffrey Spector has identified several REITs that currently appear undervalued based on their adjusted funds from operations (AFFO) multiples in relation to stock prices. Below are five REITs that offer compelling dividends and potential for price appreciation:

1. Americold Realty Trust
   This company specializes in temperature-controlled warehouses globally. Following a decline of over 10% this week, it reached a 52-week low. Currently, it offers a dividend yield of 4.7%. With a price target of $30, Spector forecasts a potential upside of 47% from Thursday’s closing price.
2. Getty Realty
   Focused on retail real estate, specifically convenience and automotive properties, Getty Realty has maintained a flat performance this year. With a yield of 6.3% and a price target of $35, Spector anticipates a 15% increase from recent closing prices.
3. Healthpeak Properties
   Investing in various senior housing and healthcare facilities, Healthpeak Properties is expected to benefit from demographic trends as the population ages. Yielding 6.5%, the stock has dipped 8% this year. Spector raises expectations with a price target of $25, suggesting a potential increase of 28%.
4. Sabra Health Care
   With a focus on skilled nursing and specialty hospitals, Sabra Health Care has exhibited flat performance year-to-date, providing a nearly 7% yield. Spector’s price target of $21 indicates a 19% upside from its current position.
5. Kite Realty Group
   Owning and developing open-air shopping centers, Kite Realty offers a yield of around 5.2%. Despite a 17% decline this year, Spector’s price target of $28 suggests a potential rally of 30% from Thursday’s close.

Bolstering Investment Strategies

As investors navigate uncertain markets, exploring REITs with consistent dividends can serve as a strategic approach. With dividends providing a source of income amid fluctuating stock prices, these investments can prove beneficial for both risk-averse and growth-focused investors.

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