3 REITs With Big Dividend Growth and Sustainable Payouts

Core Insights - Real Estate Investment Trusts (REITs) are significant investment vehicles that must distribute at least 90% of their taxable earnings as dividends, leading to high dividend yields [1][2] Group 1: Summit Hotel Properties - Summit Hotel Properties increased its total dividend payouts in 2024 by 36%, from $0.22 per share in 2023 to $0.30 per share in 2024 [2][3] - The current indicated dividend yield for Summit Hotel is 4.80%, with an annual dividend of $0.32 and an extreme dividend payout ratio of 3,200% [3] - The company had to suspend its dividend in 2021 due to the pandemic but had consistently raised or maintained its annual dividend payments since 2011 prior to that [3] Group 2: Veris Residential - Veris Residential increased its annual dividend payments by 150% over 2023, paying out over $0.26 per share compared to under $0.11 per share in 2023 [5][6] - The indicated dividend yield for Veris is just over 2%, up from 1.3% at the beginning of the year, with a sustainable payout ratio below 40% [7] - Veris primarily focuses on Class A multifamily properties, with 83% of its properties being Certified Green, and has seen a 70% increase in revenue per home since 2021 [8] Group 3: RLJ Lodging Trust - RLJ Lodging Trust's dividend payments in 2024 increased by 39% to $0.50 per share, resulting in an indicated dividend yield of nearly 5.9% [9][10] - The company has a sustainable payout ratio of around 35% and has consistently raised its dividend over the past few years [11] - RLJ operates premium-branded hotels, with over 90% of its properties affiliated with major brands like Marriott, Hilton, or Hyatt [11]