Build a basket of high performing dividend paying stocks

March's Consumer Price Index (CPI) once again poured cold water on investors' hopes that the Fed will cut interest rates three times in 2024. Where inflation data from both core and non-core readings came in higher than expected, this suggests that the Fed may have difficulty in meeting its goal of bringing annual inflation down to 2%.

As a result, stocks have sold off and interest rate-sensitive real estate investment trusts (REITs) have been hit hard. Dividend yields on many REITs have risen in the past few days.

In the best of both worlds, REIT investors will hold stocks that will both appreciate in value and provide high yields. However, it's often difficult to find high-yield stocks that don't lag in price.

Let's take a look at five REIT stocks that have risen in value year-to-date (YTD), with annual dividend yields ranging from 7% to 9%. In addition, these five companies are diversified across a number of different REIT subsectors. Long-term investors can capitalize on current market sentiment by building a basket of these REITs while interest rates remain high.

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NewLake Capital Partners Inc.(OTCMARKETS: NLCP) is an internally-managed, specialized industrial REIT with its headquarters in New Canaan, Connecticut.firmsNewLake Capital Partners specializes in triple net leasing for marijuana companies and provides capital when needed. Its market capitalization is only $369.06 million.

NewLake was founded in 2019 and is scheduled for an August 2021 initial public offering (IPO). Its tenants include some of the largest companies in the cannabis industry, such as Curaleaf and Cresco Labs Inc. As of March, the company's occupancy was 1,001 TP3T, with an average of 14.3 years remaining on leases, and rent increases of 2.61 TP3T per year on leases between 15 and 20 years.

On March 14, Compass Point analyst Merrill Ross upgraded NewLake from a "Neutral" rating to a "Buy" rating and announced a $18.25 price target.

On March 11, NewLake announced its fourth quarter operating results. Funds from Operations (FFO) of $0.51 was above estimates of $0.45 and $0.48 for the fourth quarter of 2022. Revenues were $13.02 million, above Wall Street estimates of $11.41 million and above Q4 2022 revenues of $12.18 million.

On March 11, NewLake Capital Partners raised its quarterly dividend from $0.40 per share to $0.41 per share. The annualized dividend yield of $1.64 per share is 8.93%.

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On April 2, the Florida Supreme Court approved an initiative to legalize recreational marijuana in Florida through a referendum on the November ballot. This should benefit NewLake, which leases a property in Florida to Curaleaf Holdings and has several other tenants with locations in Florida.

As of today, NewLake Capital Partners has an Aggregate Return of 16.03%, keeping in mind that as an over-the-counter (OTC) stock with an average daily volume of about 32,000 shares, it can be quite volatile.

Omega Healthcare Investors Inc. (NYSE:OHI) is a triple net equity healthcare REIT based in Hunt Valley, Maryland, that provides financing, capital and leasing services to 69 operators of 862 nursing homes, skilled nursing and assisted living facilities in 42 U.S. states and the U.K. Omega Healthcare Investors is not involved in the day-to-day management of these facilities, which are operated by the operators. Omega Healthcare Investors is not involved in the day-to-day management of these facilities, which are operated by the operators.

On March 22, Citi analyst Nicholas Joseph upgraded Omega Healthcare from a "Neutral" rating to a "Buy" rating and raised the price target to $35 from $32. On April 2,... Truist Securities analyst Michael Lewis maintained a "hold" rating on Omega, raising the target price to $32 from $31.

OMEGA's annualized return on total assets was 1.621 TP3T. The annualized dividend yield of $2.68 per share was 8.731 TP3T.

AlexandriaShanta Corporation(NYSE:ALX) is an amalgamated retail real estate facility located in Paramus, New Jersey.investment trustCompany.By Vornado Realty Trust, Inc.(NYSE:VNO), which also owns 33.1% of Alexandria's stock. Alexandria owns five large properties in the New York metropolitan area.

On February 12, Alexandria announced its fourth quarter operating results. Fourth quarter FFO was $4.99, up from $4.03 in the fourth quarter of 2022. Revenue was $62.94 million, up from $53.05 million in the fourth quarter of 2022.

Alexandria's annualized dividend yield per $18 share is 8.06%. To date, Alexandria's Aggregate Yield is 5.38%.

Highwoods Properties Inc. (NYSE:HIW) is an office real estate investment trust with its headquarters in Raleigh, North Carolina, and owns, develops, acquires, leases and manages properties in the southern cities of Atlanta, Charlotte and Raleigh, North Carolina, Dallas, Nashville, Tennessee, Orlando and Tampa, Florida, and Richmond, Virginia. The Company was founded in 1978, and its initial public offering was made in 1994.

Highwoods has 28.4 million square feet of office space. As of December 31, occupancy was 88.91 TP3T. Highwoods' tenant base is diverse, with its top 10 tenants including Bank of America, the federal government, MetLife, Bridgestone Americas and PPG Industries. The company also owns approximately 120 acres of land.

On February 7, Highwoods Properties announced its fourth quarter operating results. Financial net income of $0.99 per share exceeded analysts' estimates of $0.91 per share and was higher than the fourth quarter 2022 financial net income of $0.96 per share. Revenue of $206.86 million was slightly below market expectations of $207.83 million and down from $211.71 million in the fourth quarter of 2022.

On March 28, Morgan Stanley analyst Ronald Kamdem maintained a "hold" rating on Highwoods Properties, while raising the price target to $21 from $18.

On April 4, Highwoods announced the sale of nine office buildings for gross proceeds of $79.4 million, which will be used to reduce the outstanding debt on the revolving credit facility.

Highwoods has an annualized dividend of $2 per share, yielding 7.96%. Highwoods Properties has an annualized Aggregate Dividend Yield of 9.82%.

Modiv Industrial Inc.(NYSE:MDV) is an internally managed, diversified real estate investment trust in Reno, Nevada, with 42 single-tenant, net-leased properties in 15 states with a total gross area of 4.5 million square feet. The company owns 39 industrial properties, 4 office properties, 1 retail property, and has approximately 30 tenants in its portfolio of properties.

The weighted average lease term (WALT) of its portfolio is 14 years, with an average annual rent increase of 2.51 TP3T. its occupancy rate is 1001 TP3T. last year, Modiv sold its non-core office properties to focus more on its industrial portfolio.

On March 4, Modiv announced its fourth quarter operating results. Financial net income per share was $0.40, ahead of market expectations of $0.38 per share. Revenue was $12.29 million, slightly below expectations of $12.14 million.

Modiv's annualized dividend yield of $1.15 per share is 7.271 TP3T. The year-to-date Aggregate Return is 17.231 TP3T.

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