Alexandria's recent dividend cut came as a surprise to many of us. I expect many more bad surprises in 2026. Avoid these REITs to protect your portfolio.
REIT dividend yields are still historically high. They will become even more enticing as interest rates continue to be cut. Here are three of my favorite high-yielding REITs going into 2026.
I focus on three high-yield stocks offering attractive risk/reward for income-focused investors. Yields above 5.5% are justified only if risk/reward is compelling versus the 10-year government bond yield. Chasing ultra-high yields often erodes principal; prudent yield targeting is essential for wealth preservation.
Agree Realty offers a solid entry point after a recent pullback, combining income stability with measured growth and a 4.4% dividend yield. ADC's portfolio has 99.7% occupancy, 67% investment-grade tenants, disciplined acquisitions, and robust internal rent growth supporting mid-single-digit FFO/share growth. ADC's construction arm and tenant mix evolution provide alternative growth avenues and justify a premium valuation versus peers.
Passive income is characterized by its ability to generate revenue without the earner's continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Daichi Sankyo remains a Buy, despite recent setbacks in its Trop2-directed ADC for lung cancer. DSKYF continues to advance its pipeline, offering positive catalysts over the next year. Recent financials and pipeline updates reinforce conviction in the investment thesis at current levels.
The Fed is expected to cut interest rates in a few days. The rate cuts are a strong catalyst for the REIT sector. I highlight two REITs that have a lot to gain from this.
U.S. equity markets dipped in a volatile week, while benchmark interest rates pulled back from one-month highs, as renewed anxiety over stretched AI-driven valuations collided with mounting monetary policy uncertainty. Public commentary from Fed officials revealed an unusually fractured committee, with a divide that was deepened further by a mixed slate of employment data via the long-delayed September payrolls report. Payrolls data showed that the U.S. economy added 119k jobs in September- better than estimates- but prior months were revised lower and the unemployment rate rose to four-year highs.
Agree Realty Corporation is a financially robust REIT with a $9.08B asset base, investment-grade ratings, and a 30-year dividend history. ADC.PR.A preferred stock offers a 5.88% yield, outperforming ADC's unsecured bonds, and features cumulative dividends and a short duration to call in 2026. ADC.PR.A's BBB-/BBB/Baa2 ratings and strong financial metrics make it an appealing choice for conservative, risk-averse investors seeking stable income.
Most dividend stocks only pay investors on a quarterly basis. Most corporate bonds and government Treasury bonds only pay interest payments semi-annually. Passive income paid monthly is a perfect way to help with monthly expenses and other costs.
CytomX (CTMX) is advancing its ADC candidate CX-2051 in the oncological field. CX-2051 shows an impressive response rate and improved progression-free survival in heavily pretreated colorectal cancer patients, outperforming current therapies. Investment in CTMX is high risk and binary, but promising science and early clinical data support a speculative Buy for risk-tolerant investors.
Retail REITs like Agree Realty, Federal Realty and Urban Edge are thriving as tight supply, disciplined growth and necessity-driven tenants sustain stability.