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Dividend Opportunities in Real Estate Sector

Income-oriented investors should keep an eye on Macerich, Park Hotels & Resorts, and Ventas.

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Kevin Brown: Real estate investment trusts are excellent investments for income-oriented investors, so we want to highlight three companies that are paying above-average dividends.

Mall REIT Macerich combines a double-digit dividend yield with a significant discount to our fair value estimate. The company has traded off on fears of retail weakness impacting the company's portfolio, which would force the company to cut their dividend. While they will continue to deal with store closures and higher redevelopment expenses in 2020, we think Macerich's Class A mall portfolio will see solid sales growth and produce enough cash flow to support the current dividend. However, there are significant risks to Macerich's plan, so risk-averse investors should be cautious.

Kevin Brown does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.