real estate investment Trust REITs have emerged as an efficient diversification strategy to hedge against inflation, offering high dividend yields, strong long-term yields and liquidity. Unfortunately, higher interest rates tend to make REITs’ high dividend yields less attractive compared to the risk-free rate.

On the other hand, rising interest rates signal economic growth and inflation, both of which are positive for REITs. During periods of high inflation, property owners can charge higher rents, which has historically led to dividend growth during high inflation. Finally, economic growth signals higher occupancy rates, allowing REITs to generate more earnings, cash flows, and dividends.

Hersha Hospitality is among the non-dividend REITs that just reintroduced its dividends.

Hersha Hospitality Trust HT offers an annual dividend of 5 cents per share for the third quarter, with a mixed track record of growing its dividends. Hersha Hospitality is a self-advising hospitality real estate investment trust that owns and operates luxury and lifestyle hotels in coastal and resort markets.

The Company owns 30 hotels totaling 4,544 rooms in New York, Washington, DC, Boston, Philadelphia, Miami and select West Coast markets.

The Hersha Hospitality Board of Trustees has approved a cash dividend of $0.05 per common share and per limited partnership unit for the third quarter ended September 30, 2022.

The Board of Directors continues to monitor and evaluate market conditions and intends, if it is in the best interests of the Company, to declare a special cash dividend for common and limited partnership holders in the fourth quarter of 2022.

Also read: Companies froze dividends in Covid-hit 2020: a select few didn’t bring them back. Here’s when they might.

City Office REIT Inc CIO offers a dividend yield of 6.90%, or 80 cents per share annually, makes quarterly payments and has a proven track record of growing its dividends…


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