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Top 3 REIT Picks for 2025: High Yields and Rising Earnings Ahead
CCICrown Castle(CCI) MarketBeat·2024-11-01 11:30

Core Insights - Real Estate Investment Trusts (REITs) are designed to provide income by distributing at least 90% of their earnings to shareholders to maintain tax advantages [1] - REITs can offer both dividends and potential stock price appreciation, with analysts projecting significant earnings growth for certain REITs in fiscal 2025 [2] Realty Income Corporation - Realty Income Corporation offers a strong dividend yield of 5.2% with an expected adjusted EPS growth of 21% in 2025 [2] - The company has a 32-year track record of increasing dividends, with a current annual dividend of 3.16andapayoutratioof292.593.16 and a payout ratio of 292.59% [3] - Analysts predict an 8% average price target upside, with UBS Group projecting a 19% upside to 72 [4] Park Hotels and Resorts - Park Hotels and Resorts has a dividend yield of 7.19% and an annual dividend of 1.00,witha10.061.00, with a 10.06% annualized 3-year dividend growth [6] - Despite a total return of -4% this year, analysts expect adjusted EPS to grow by 60% in 2025 and 15% in 2026 [5][6] - The company’s forward-looking dividend yield is projected at 9%, influenced by a recent special dividend [7] Crown Castle - Crown Castle has a dividend yield of 5.82% and an annual dividend of 6.26, with an 8.29% annualized 3-year dividend growth [9] - The company is expected to recover in 2025 with an adjusted EPS growth of 18%, despite a projected 37% drop in the current year [9][10] - Crown Castle has consistently raised its annual dividend since 2015, although it currently holds a "Hold" rating among analysts [10][11]