Barclays Says Buy the Dip in 2 Hotel REIT Stocks With Up to 9% Dividend Yield

Dividend stocks person ever had their boosters, and for plentifulness of bully reasons. Steady income streams, based connected reliable payments, are ever bully to have.

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Barclays expert Richard Hightower has been watching the lodging REIT sector, seeking coagulated dividend payers. It’s a logical spot to look; REITs are known arsenic ‘dividend champs’ successful the banal markets, and often connection high-yield payments. Lodging REITs ain and run edifice properties ranging from system brands to upscale resorts, and their currency flows are tied intimately to tourism, concern travel, and wide economical activity.

To beryllium sure, Hightower acknowledges that lodging REITs person lagged successful caller years. Still, the expert argues that underperformance hasn’t wiped retired the accidental – and that selective investors tin inactive uncover standout names offering some resilience and coagulated income.

“We bash spot opportunities for comparative outperformance wrong Hotel REIT… With respect to the gross maturation outlook for 2026, we spot reasons for optimism, arsenic follows: First, opening successful 2Q26, wide ‘comps’ are easier crossed respective REITcentric markets, astir notably successful Washington, DC and Los Angeles, with different markets (e.g. the Bay Area) conscionable opening to ramp again pursuing COVID-era depression.  Second, 2026 volition bask an exceptionally beardown calendar for large events and citywides, including the Super Bowl, World Cup, and America 250.  And finally, owed to a constricted situation for operation financing and the precocious outgo of caller edifice construction, the outlook for proviso maturation is stable, and should not contiguous a headwind to gross maturation for the adjacent respective years,” Hightower opined.

Put it each together, and the setup starts to look much compelling than caller show mightiness suggest. Hightower has zeroed successful connected 2 lodging REITs offering dividend yields arsenic precocious arsenic 9%. The evident follow-up is whether the remainder of the Street shares his view. To reply that, we turned to the TipRanks database. Let’s instrumentality a person look.

Apple Hospitality REIT (APLE)

The archetypal Barclays prime we’ll look at, Apple Hospitality, is 1 of the largest lodging REITs successful the US edifice market. The institution holds a ample and divers portfolio of edifice properties, including immoderate 217 hotels boasting a full of immoderate 29,600 rooms. The company’s properties are located successful 84 markets crossed 37 states positive DC. Apple’s portfolio includes hotels operating nether brands owned by specified large names arsenic Marriott, Hilton, and Hyatt.