Business, Startups & Finance

Small Business REITs With Yields Exceeding S&P 500

A curated selection of Real Estate Investment Trusts focusing on small-cap commercial properties, offering attractive dividend yields that historically outperform the broader S&P 500 index. These trusts provide investors with exposure to niche real estate sectors while generating consistent income through higher payout ratios.

ID: 62110
Items: 20
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Realty Income Corporation

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Known as 'The Monthly Dividend Company,' this REIT invests primarily in commercial real estate leased to a diversified tenant base. Its investment-grade credit rating and consistent dividend growth make it a stable choice for income-focused investors seeking yields above the S&P 500 average.

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Stag Industrial Inc.

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Focused on single-tenant industrial properties, Stag Industrial benefits from the e-commerce boom driving demand for warehouse space. The REIT offers a compelling dividend yield and strong occupancy rates, providing exposure to the logistics sector with less volatility than large-cap tech stocks.

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Pebblebrook Hotel Trust

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This lodging-focused REIT owns a portfolio of upscale hotels across major U.S. cities. With high operational leverage, it can generate significant cash flow during travel recovery periods, resulting in yields that often surpass traditional market indices while offering growth potential.

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Sun Communities Inc.

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A leading owner and operator of premium manufactured housing communities, Sun Communities benefits from a structural shortage of affordable housing. Its stable cash flows and disciplined capital allocation support a dividend yield that provides a reliable alternative to equity market fluctuations.

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National Storage Affiliates Trust

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NSA operates self-storage facilities in high-growth sunbelt markets, offering defensive characteristics during economic downturns. The REIT's strategic focus on key metropolitan areas allows it to maintain high occupancy and deliver attractive yields compared to broader market benchmarks.

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Gladstone Investment Corporation

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As a business development company, Gladstone invests in middle-market companies, providing senior secured loans and equity. Its business model is designed to generate high current income, resulting in dividend yields that significantly exceed those of standard S&P 500 dividend payers.

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Main Street Capital Corporation

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Main Street Capital provides capital to middle-market businesses through structured debt and equity investments. Its diversified portfolio and long history of increasing dividends offer investors a robust yield stream, often trading at a discount to intrinsic value compared to broader market ETFs.

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Oxford Square Capital Corp.

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Oxford Square focuses on investing in the debt of middle-market companies, offering high current income. The REIT's active management strategy aims to mitigate risk while maintaining a dividend yield that remains substantially higher than the average S&P 500 payout ratio.

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Gladstone Capital Corporation

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Similar to its sister company but with a different risk profile, Gladstone Capital invests in various debt instruments and equity in small to mid-sized businesses. Its focus on flexible financing solutions allows it to capture higher interest rates, supporting superior yield generation.

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Eagle Point Credit Company Inc.

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Eagle Point invests in non-investment grade debt and structured credit, targeting high yields for income investors. By taking a more aggressive approach to credit risk, it offers dividend distributions that often outpace the fixed income components of the S&P 500.

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PennantPark Floating Rate Capital Ltd.

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This BDC invests in floating rate loans to middle-market companies, providing protection against rising interest rates. The floating rate nature of its portfolio helps maintain strong distribution levels, offering a yield that rivals or exceeds many traditional equity indices.

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Granite Point Trust Corp.

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Granite Point focuses on senior secured loans to middle-market companies, emphasizing capital preservation and income. Its conservative investment strategy and focus on floating-rate instruments support a reliable dividend yield that offers an attractive alternative to low-yield savings accounts.

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New Mountain Finance Corporation

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New Mountain Finance invests in senior secured debt and equity of middle-market companies, leveraging its experience in financial services. The REIT's disciplined underwriting and focus on strong cash flows enable it to maintain a dividend yield that stands out against the S&P 500.

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Prospect Capital Corporation

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As one of the largest BDCs, Prospect Capital invests in a diverse portfolio of middle-market companies. Its extensive scale and diversified lending portfolio provide steady income distributions, offering investors a yield premium over the broader equity market.

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Ares Commercial Real Estate Corp.

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This mortgage REIT invests in commercial real estate debt, offering high yields through interest payments. By focusing on specific asset classes like multifamily and office loans, it provides investors with exposure to real estate credit spreads that exceed traditional bond yields.

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Annaly Capital Management Inc.

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Annaly is a major mortgage REIT that invests in agency mortgage-backed securities. While sensitive to interest rate changes, it offers one of the highest dividend yields in the REIT sector, providing substantial income potential for investors willing to navigate rate volatility.

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Main Street Preferred Inc.

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A subsidiary of Main Street Capital, this REIT invests in preferred equity and debt securities. Its focus on hybrid securities offers a fixed-income-like yield with potential equity upside, often delivering higher returns than the average S&P 500 dividend yield.

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Golub Capital BDC Inc.

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Golub Capital invests in first lien senior secured loans to middle-market companies, offering a stable income stream. The BDC's global presence and specialized underwriting capabilities allow it to generate yields that consistently outperform broader market averages.

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Oaktree Strategic Income Corp.

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Oaktree focuses on opportunistic fixed income and hybrid securities, including emerging market debt. Its active management approach aims to enhance returns and provide a high dividend yield, serving as a yield-enhancing complement to traditional equity portfolios.

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Hercules Capital Inc.

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Hercules Capital specializes in financing early-stage and growth-stage technology and life science companies. This niche focus allows it to command higher interest rates and equity kickers, resulting in dividend yields that significantly exceed those of the general stock market.