Investing in stocks with high dividend yields can be a great way to provide a steady income. One of the most interesting options in this area are real estate investment trusts (REITs), which are designed to distribute large amounts of income to shareholders through dividends.

Among the best REITs on the market, according to many analysts, are Realty Income, W.P. Carey and NNN REIT, which offer not only attractive yields but also stability in turbulent times.

Net Lease REIT: How does it work?

Net lease REITs differ from traditional real estate investments in that tenants pay most of the costs associated with operating the property, such as maintenance, taxes and insurance. This model benefits both parties: the landlord is relieved of the burden of managing the property, while the tenant has control over the maintenance of an important asset. This structure also allows net lease REITs like Realty Income, W.P. Carey and NNN REIT to quickly increase their income and reduce the risk associated with individual properties by diversifying their portfolio.

Realty Income $O

Realty Income was founded in 1969 and has since become one of the most prominent and respected net lease REITs in the U.S. The company focuses on investing in properties that generate steady income through long-term lease agreements with quality tenants. Realty Income is often dubbed the "Monthly Dividend King" due to its tradition of paying monthly dividends and steady dividend increases for 29 years.

Realty Income is the largest player in the net lease REIT sector with a market capitalization of about $55 billion and a dividend yield of approximately 5%. The company has a reputation as a reliable dividend payer, having increased its monthly dividend for 29 consecutive years. Realty Income's portfolio includes more than 15,400 properties in North America and Europe, which includes both retail (73% of leases) and industrial assets (17%). Because of its broad diversification, Realty Income is considered a stable, low-risk investment.

NNN REIT $NNN

Founded in 1990, NNN REIT focuses on investing in retail real estate. The company has built a strong reputation in the marketplace for its innovative approach and tenant relationship-focused strategy. NNN REIT emphasizes long-term leases and maintains excellent relationships with many retail brands.

NNN REIT focuses primarily on retail properties and owns approximately 3,500 of these properties in the US. The company is known for its ability to increase dividends for 35 consecutive years, with a current yield of approximately 4.8%. What differentiates NNN REIT from its competitors is its relationship model, where approximately 72% of acquisitions were made with existing partners. This trust between partners allows for quick transactions, resulting in higher yields and stable income.

W.P. Carey $WPC

Founded in 1973, W.P. Carey is one of the oldest and largest net lease REITs. The company specializes in long-term leases with tenants in a variety of sectors, including industrial and retail. W.P. Carey is known for its ability to effectively manage a diverse portfolio of properties and proactively respond to market conditions.

With a current yield of 5.9%, W.P. Carey has a 25-year track record of steadily increasing dividends. However, the dividend reset in 2024 due to the exit of the distressed office sector. Despite this dividend cut, W.P. Carey has quickly returned to an upward trend, indicating strong future prospects. Its portfolio consists of nearly 1,300 properties, with more than 64% of its revenue coming from industrial properties.

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Source: Yahoo Finance, TheMotleyFool.