The Smartest High-Yield Dividend Stocks to Buy With $1,000 Right Now

Core Viewpoint - The commercial real estate sector has faced challenges due to higher interest rates, but a potential decline in rates could benefit real estate investment trusts (REITs) by boosting portfolio values and stock prices [1][2]. Group 1: EPR Properties - EPR Properties offers a monthly dividend yield of 6.9%, significantly higher than the S&P 500's 1.2% yield, potentially generating $69 of annual income from a$1,000 investment [3]. - The REIT has been funding its growth internally due to increased cost of capital, investing $200 million to$300 million annually into experiential real estate, supporting 3% to 4% annual growth in adjusted funds from operations (FFO) per share [4]. - As interest rates decline, EPR Properties can increase its investment pace, potentially delivering higher total returns than the current double-digit rate [5]. Group 2: Realty Income - Realty Income's stock currently yields 5.7%, impacted by a 25% decline in stock value due to rising interest rates, yet it has maintained a consistent dividend growth streak for 110 quarters [6]. - The REIT executed a $9.3 billion acquisition of Spirit Realty without accessing capital markets, using stock exchange and assuming existing low-rate debt [7]. - Realty Income plans to launch a private capital fund management platform to access less-volatile equity capital and generate management fee income, allowing for increased acquisition rates if stock prices rise [8]. Group 3: Mid-America Apartment Communities (MAA) - MAA's shares have decreased over 30% from their peak, resulting in a dividend yield of 3.8% [9]. - Higher interest rates have led to a reduction in new apartment projects, which, combined with strong demand, is expected to reignite rent growth, benefiting MAA's share price [11]. - MAA is actively pursuing development projects and acquisitions, with seven projects under construction and plans for additional developments, positioning the REIT for strong total returns [12]. Group 4: Investment Outlook - The decline in values for EPR Properties, Realty Income, and MAA due to higher interest rates has increased their dividend yields, making them attractive investment opportunities as rates are expected to fall [13].