These stocks pay attractive dividends and offer ‘turmoil insurance’
Investors looking for stability during volatile periods often turn to dividend stocks — including real estate investment trusts. On Wednesday, stocks moved lower after President Donald Trump said the United States will attack Iran ” very hard .” Earlier in the day, the president said Iran would “pay the price” for negotiations that were ” taking too long .” Concerns over the conflict have weighed on stocks since the war began in late February, and at other times, equities have popped when there has been news about a potential resolution. Amid this year’s turbulence, real estate stocks have outperformed — overcoming any concerns around rising interest rates, which usually pressure REITs due to their high capital costs and dividends. Yet, the S & P 500 real estate sector has gained 12% so far this year, and hit a 52-week high on Wednesday. Meanwhile, the S & P 500 is up roughly 7% in 2026. .SPLRCR .SPX YTD line The S & P real estate sector vs. the S & P 500 year to date REITs also pay solid income. The FTSE Nareit All Equity REITs Index yielded 3.62%, as of Tuesday. Income and inflation protection In this environment, REITs are “turmoil insurance,” Ladenburg Thalmann said in a note Tuesday. The Wall Street firm is warning investors to be increasingly mindful of valuation risk for the stock market as a whole, where leadership is highly concentrated, artificial-intelligence spending is unprecedented and the equity risk premium is compressed to near historic levels. “[W]e believe the current environment warrants a more balanced assessment of risk and reward, particularly as market valuations remain elevated relative to historical norms,” analyst Floris van Dijkum said in the report. “Against this backdrop, we believe high-quality REITs offer a compelling combination of current income, inflation protection, and relatively attractive valuations, characteristics that may prove increasingly valuable should investor sentiment shift away from long-duration growth assets,” he added. Top picks Dijkum sees specific opportunities in retail, office and hotel REITs. Here are some of his top picks. Simon Property is Dijkum’s top mall recommendation. The REIT, which has a dividend yield of 4.21%, owns or has an interest in 235 retail properties around the world. In May, Simon reported first-quarter funds from operations that topped expectations, and raised its full-year FFO guidance to between $13.10 and $13.25 per share from $13.00 to $13.25. Dijkum isn’t alone. Simon Property has an average analyst rating of overweight, although the consensus price target is only around where the stock trades today, according to FactSet. Simon hit a 52-week high on Wednesday and has gained 15% in 2026, excluding the dividend. SPG YTD mountain Simon Property Group year to date Kite Realty Group , which yields 4%, also reached a 52-week high on Wednesday. The company owns, operates and develops open-air shopping centers and mixed-use assets. Its portfolio, mostly made up of grocery-anchored shopping centers, is largely located in the Sun Belt . In April, Kite Realty reported a narrow beat on its core FFO, and revenue that topped expectations. The stock has an average analyst rating of overweight, but consensus prices targets are roughly 2% below where the stock trades, according to FactSet data. Shares have rallied almost 21% this year. In the hotel category, Host Hotels & Resorts stands out to Dijkum. The REIT owns 76 hotel properties, with a focus on luxury and upper-upscale. It partners with brands such as Marriott, Ritz-Carlton and Hyatt. Host Hotels & Resorts recently raised its adjusted FFO guidance for the year to between $2.10 to $2.15 per share, up from $2.03 to $2.11 previously. HST YTD mountain Host Hotels & Resorts year to date Analysts also like Host, giving it an average rating of overweight, according to FactSet. Again, the Street’s average price target is roughly around where the stock trades today. Host has soared 36% so far in 2026, and pays a 3.31% dividend yield.
