These REITs offer stable high payouts

Article Excerpt

H&R REAL ESTATE INVESTMENT TRUST $21 (Toronto symbol HR.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Units o/S: 283.9 million; Market cap: $6.0 billion; Price-to-sales ratio: 5.4; Dividend Sustainability Rating: Above Average; Dividend yield: 6.6%; owns or has a stake in 515 office buildings, industrial properties and shopping malls across Canada and the U.S. In all, these holdings include 46.6 million square feet of leasable space. The trust has a 95.9% occupancy rate. With the December 2016 payment, H&R REIT raises its monthly distribution by 2.2%. The new annualized distribution of $1.38 per unit gives it a yield of 6.6%. The trust pays out about 70% of its cash flow as distributions. H&R REIT offers a distribution reinvestment plan. Unitholders get a 3% bonus if they participate in the DRIP. Those investors can also make periodic cash purchases of units—from a minimum purchase of $250 a year to a maximum total purchase of $13,500 annually. There is no discount for…

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