Benefits of these kinds of shares include:

• They pay 90% of annual profits out in the form of dividends.
• REITs are popular with international investors, a quality that gives them more cash to put to work.
• They offer me a wide range of property sectors to invest in, thus reducing my risk through diversification.
• Property stocks like these can often raise rents in line with inflation, eliminating the impact of rising prices on my wealth.

Here are three I’m considering spending my cash on in November.

Target huge returns

I already own Target Healthcare REIT in my Stocks and Shares ISA. Following heavy share price weakness I’m considering building on my existing position.

The business — which focuses on the care home sector — trades on a forward price-to-earnings growth (PEG) ratio of 0.4. This is under the threshold of 1 that indicates a stock is undervalued.

Target’s dividend yield meanwhile stands at an enormous 8.4%.

Growing nursing staff shortages pose a threat to the company’s profits. But I believe this is offset by the potential benefits brought by Britain’s rapidly ageing population.

Government forecasts suggest one-in-seven Brits will be aged over 75 years by 2040. It’s my expectation that demand for care homes will rise rapidly over the next few decades.

Home run

Britain has a considerable shortage of rental homes. A blend of falling buy-to-let investors, weak housebuilding activity, and population growth means that the shortfall looks set to worsen too.

In this situation residential rents look set to keep growing. I’d buy shares in KCR Residential REIT to capitalise on this theme. That’s even though rising interest rates are pushing its debt servicing costs higher.

This particular property stock is focussed on the more affluent regions of London and the South of England. I also like its decision to build apartments for people aged 55 and over. This, like Target, gives it an increasingly large clientele to aim at.

Another dirt-cheap REIT

The retail sector faces significant near-term uncertainty as consumer spending sinks. This in turn poses threats to commercial property owners like Ediston Property Investment Company.

But it’s my opinion that this threat is baked into the company’s low share price. Today the retail park owner trades on a forward PEG of 0.3 times.

I’m also a fan of the company’s 8.3% dividend yield.

The retail park sector is tipped for solid growth in the post-pandemic age. Easy parking, spacious shop units, and a larger range of goods make them ideal places for the modern customer. The growth of ‘click and collect’ also gives them a chance to indirectly cash in on the e-commerce boom.

Real estate investment trusts (REITs) can be great ways to generate passive income. And I’ve bought these property shares to boost my dividend income.

This is because REITs are required to pay 90% of annual profits out via dividends. I have also bought them as a way to protect myself from soaring inflation.

Here are two I think could deliver exceptional long-term passive income.

Take care

Target Healthcare REIT (LSE: THRL) will have a critical role to play as Britain’s population rapidly ages and life expectancies increase. In fact, this is a dividend stock I’ve recently added to my own portfolio.

Target operates a portfolio of around 100 purpose-built care homes. And it is expanding rapidly to meet growing demand for its services. The government estimates the number of over-85s in Britain — the primary users of care homes — will double between now and 2040.

I like this real estate stock because profits are driven by demographics rather than economic conditions. What’s more, because it specialises in residential property, rent collection can be more robust than companies operating in other sectors. This gives earnings forecasts an extra layer of security.

Although Target’s profit growth could disappoint if staff shortages in the care home sector persist, I think this threat is baked into the company’s low share valuation. Today, the business trades on a price-to-earnings growth (PEG) ratio of 0.5. Any reading below 1 suggests that a stock could be undervalued.

And this, combined with the REIT’s 6.4% dividend yield, I think makes it a brilliant value stock to buy today.

Another top REIT

I also think getting exposure to the student accommodation market is a good investing strategy. Like the care home sector, this property segment is plagued by a worsening supply and demand balance.

Unite Group (LSE: UTG) is a REIT I’m considering buying to capitalise on this opportunity. Its forward dividend yield sits at a more modest 3.1%. But it’s excellent history of dividend growth still makes it a top income buy, in my book.

To recap, Unite grew annual dividends an impressive 159% between 2014 and 2018. The business cut dividends on the outbreak of Covid-19, but shareholder payouts are rising again and predicted to continue soaring.

City brokers think 2021’s full-year reward of 21.1p per share will surge to 32.9p and 36.6p in 2022 and 2023 respectively.

UK universities have for centuries been a magnet for foreign students. And the number of overseas visitors is expected to pick up strongly. Student applications service UCAS reckons the number of international undergraduate applicants will reach 208,500 by 2026, up almost 50% from last year’s levels. This should, in turn, drive demand for more accommodation.

However, profits at Unite Group could suffer if property construction costs continue to rise. But I think the REIT should still deliver healthy bottom-line growth as a supply shortage keeps rents moving higher. This is a passive income stock which, like Target Healthcare, I’d happily buy to hold for the next decade.

Healthcare provisions

As a quick introduction, Target is a REIT that purchases and lets out care homes and other healthcare-related properties. It isn’t the most exciting sector, but it could be lucrative, in my opinion.

As a quick reminder, a REIT is a business designed to make money from income-yielding property. As a rule, 90% of profits must be distributed to shareholders in the form of dividends.

So what’s happening with Target shares currently? Well, as I write, they’re trading for 114p. At this time last year, the stock was trading for 124p, which is an 8% decline over a 12-month period. This does not concern me, as many shares have pulled back due to macroeconomic and geopolitical factors in recent months. In fact, the shares falling could make them a bargain currently.

Risks to note

As with any dividend stock I am looking to add to my holdings, I must remember that dividends are never guaranteed. These can be cancelled at the discretion of the business at any time. This can be for a multitude of reasons such as poor performance or even an extreme event like a recession or pandemic like in 2020.

Target, like many other REITs, could come under pressure from the current cost-of-living crisis which may affect rent collection. If it cannot collect its rent, it cannot perform and return money to shareholders in the form of dividends. This is a real risk towards boosting my passive income through the shares. I will keep an eye on developments here.

A REIT I would buy

I believe Target has defensive capabilities. This is because healthcare and provisions linked to healthcare are essential for all people. This could see its ability to perform increase in the years ahead. Furthermore, the ageing population in the UK could also boost Target’s performance and returns with its interests in care homes.

So to the fundamentals then. I like the look of Target’s performance track record. Now I do understand that past performance is not a guarantee of the future, but performance underpins returns. Looking back, it has grown revenue and profit for the past four fiscal years.

Next, Target has an attractive dividend yield of just under 6% at current levels. This is almost three times the current FTSE 250 average of just under 2%.

Finally, Target shares look good value for money at current levels on a price-to-earnings ratio of just 12. There is a general consensus that a ratio of lower than 15 represents value for money when buying shares.

I like Target Healthcare REIT and it is one stock I would buy for my holdings to add to my collection of other REITS. I believe it will continue to grow in line with the demographic changes here in the UK, and provide consistent and stable returns.

Top income stock

Recession or not, we all need to eat. As such, having some exposure to the grocery sector in my portfolio could be prudent. Normally, my first choice here would be Tesco for the sheer clout it has. Then again, it’s likely that consumers will be even less loyal about where they shop for the foreseeable future.

As such, it’s hard to gauge who will come out on top. Consequently, I’m drawn to Supermarket Income REIT (LSE: SUPR) as a more defensive option.

This real estate investment trust snaps up supermarket property in residential areas with inflation-linked leases. Customers include all four of the biggest companies in this area — the aforementioned Tesco, Sainsbury’s, Asda and Morrisons. The fact that these clients are very long-term means dividends should be as secure as they can possibly be. Based on analyst estimates, SUPR currently yields 4.6%.

The downside to all this is the valuation. A P/E of 22 shows just how popular this REIT is right now. To help mitigate the risk of buying high, I’d put my money into other income stocks in addition to buying here.

Stable dividends

Speaking of which, a second REIT I’d buy is Target Healthcare (LSE: THRL). It snaps up care homes and then lets them out on long-term leases. Exciting? No. Good income visibility? Yes.

Earnings per share are projected to grow by 17% in FY23 (beginning in June). This would leave its shares trading on a forecast P/E of 17: not cheap but not ludicrously expensive either.

But Target is more than just a great option for recessionary times. The UK population is likely to see a significant shift in its age profile in the next few decades. Thanks to increased life expectancy, the number of elderly people requiring care and support will be a lot higher.

The caveat here (and elsewhere) is that the 5.9% yield can never be guaranteed. As any experienced investor knows, it’s best to expect the unexpected.

Income and growth?

As it sounds, Renewables Infrastructure Trust (LSE: TRIG) invests in renewable energy projects. These include onshore and offshore wind farms and solar parks in the UK and Europe. By selling the electricity generated, TRIG is able to provide holders with a stable income stream in good economic times and bad, hence its inclusion here.

Based on analyst projections, the FTSE 250 constituent currently yields 5.2%. That’s not enough to beat inflation on its own but it’s worth highlighting that the TRIG share price is also up 7% over the last year. Valuation-wise, the trust changes hands for 11 times earnings.

Drawbacks with TRIG include the fact that renewables projects can take time to get up and running and can be quite costly to maintain.

Like Target Healthcare however, TRIG has a pretty solid long-term outlook. As the push towards green energy really gathers momentum, I reckon the shares will be in demand. Buying for my own portfolio today could really pay off in a few years.

The UK market offers a choice of REITs, including healthcare, industrial, office and retail specialists. Here, I want to highlight three REITs with yields over 5% that I think are among the best buys today.

A top FTSE 100 REIT

A REIT is a legal structure that’s taxed differently from a company. In short, REITs get certain tax breaks so long as they return 90% of their rental profits to shareholders in the form of dividends.

One of the largest UK REITs is FTSE 100 member Landsec (LSE: LAND). This £5.6bn firm owns some of London’s most valuable office blocks, as well as a portfolio of major shopping centres, retail parks, hotels and leisure sites.

Of course, we still don’t know for sure whether office and retail demand will return to pre-pandemic levels. That’s a risk here. But, in my view, the quality and location of Landsec’s assets means they’re likely to remain popular.

On balance, I’m attracted to Landsec’s property portfolio and its forecast dividend yield of 5.1%.

A healthcare opportunity?

One sector of the market that shouldn’t be affected by working from home or internet shopping is healthcare. My choice in this area is Target Healthcare REIT (LSE: THRL), a £700m firm which owns a portfolio of long-lease UK care homes.

At the end of December, Target’s averaged unexpired lease length was 27.5 years. This should guarantee predictable rental income for many years. With Target shares offering a 6% dividend yield, this portfolio looks attractive to me.

However, it’s worth remembering that a long lease doesn’t provide any protection against tenants who suffer financial problems. Too many bankruptcies could put pressure on care home rental rates. I don’t know how likely this is, but I do believe it’s a risk.

Fortunately, the UK’s ageing population means demand for care home beds is likely to remain strong. Target estimates that the number of over 85s in the UK will double by 2040.

By focusing on purpose-built homes with wet rooms and good facilities, Target hopes to operate at the quality end of the market, attracting financially secure tenants. I think this REIT is likely to be a long-term winner in this sector.

A regional UK REIT

My final choice is Custodian REIT (LSE: CREI). This REIT is a little different from my other two picks because it owns a mixed portfolio of property in towns and cities all over the UK.

Custodian’s portfolio includes offices, shops, industrial units and warehouses. For me, this is a UK REIT that provides direct exposure to the real UK economy. The obvious risk here is that I’d expect some of Custodian’s tenants to suffer in a recession, perhaps more than at Landsec.

I’m comfortable accepting this risk, partly because Custodian REIT has a loan-to-value ratio of less than 20% — lower than average. I think this would provide some breathing room in a difficult market.

In the meantime, I think Custodian REIT’s 5.5% dividend yield looks very attractive. I’d buy this UK REIT for my portfolio at current levels.

These three REITs have an average dividend yield of 6.7%. I’m considering buying them to boost the passive income from my share portfolio, although I always have to bear in mind that the yields aren’t guaranteed.

The best retail opportunities?

Shopping centres were struggling even before Covid hit the sector. However, out-of-town retail parks and community shops such as mini supermarkets have recovered quicker and now appear to be performing quite well. NewRiver REIT (LSE: NRR) has a £700m property portfolio that’s built around these types of location.

This business isn’t without risk. Debt levels reached uncomfortable levels last year, leading to property sales to fund repayments. NewRiver’s dividend was also cut during the pandemic.

However, I’d argue that NewRiver’s current share price is low enough to reflect these concerns. The stock currently trades at a 30% discount to its book value of 131p and offers a forecast dividend yield of 7.4%. For these reasons, this UK REIT is a stock I’m considering for a passive income.

Healthcare properties with long-term incomes

My next selection is Target Healthcare REIT (LSE: THRL). This £730m business owns a portfolio of 79 care homes across the UK. The average remaining lease on these properties is 28 years, giving Target great long-term visibility of cash flows.

This REIT is continuing to expand too. Target Healthcare spent £173m on new investments during the final quarter of last year, acquiring 18 care homes and a new-build site.

The company’s properties look pretty safe to me. They generally have long leases and inflation-linked rents. The main risk I can see is that some UK care home operators have struggled to make money in recent years. If Target Healthcare’s tenants run into problems, rental rates might fall.

On balance, I’m attracted to Target Healthcare’s long-term business model. The stock also offers a forecast dividend yield of 5.8% for the current year, making it one of the highest yielders in the property sector.

A UK REIT for industrial property

My first two choices cover retail and healthcare. The other part of the economy where I’d like to own property is the industrial sector. My final pick, AEW UK REIT (LSE: AEWU), owns a mix of UK commercial properties with a bias towards industry.

Around 55% of AEW’s portfolio is made up of industrial units in regional locations. The remainder is made up of office and retail property. Although there’s a small overlap here with NewRiver, I’d be happy to own both of these REITs to gain greater exposure to the industrial sector.

My main concern here is that AEW’s average unexpired lease length is just four years. Its strategy is to buy properties with short leases and then target higher rental rates. This has worked well in recent years, when demand has been strong. However, I think it could be tougher to raise rents during a recession.

For now, the economic outlook still seems healthy. AEW recently reported stable half-year profits and confirmed it plans to pay a dividend of 8p per year. That gives it a tempting 7.1% dividend yield at current levels.

IG Group

Online trading platform IG Group (LSE: IGG) has been a huge beneficiary of the recent volatility seen in global stock markets. Since hitting a low of 563p back in March 2020, its share price has climbed 54% as traders have sought to capitalise on the big swing in sentiment.

After such a strong run, it’s rational to question whether this momentum will last for much longer. Even so, I believe the dividends on offer make IGG worthy of attention. 

The FTSE 250-listed company is likely to confirm a full-year dividend of 43.2p per share when it reports full-year results next month. At today’s share price, that gives a yield of 5% exactly. While investing in IG naturally involves more risk, that’s a world away from the paltry interest rate offered by even the best instant access Cash ISA.

On top of this, strong free cash flow also gives me hope that, after a few years of being cautiously maintained, investors could see payouts increase from here.

Central Asia Metals

Another company offering a 5% yield is copper miner Central Asia Metals (LSE: CAML). Like IG Group, the mid-cap has done well for investors over the last year. In fact, anyone who picked up the stock in June 2020 would now be sitting on a gain of around 80%! 

Of course, investing in the commodity markets isn’t for ‘widows or orphans’. The rise and fall of the gold price last year is one example of this. With this in mind, I wouldn’t hesitate to spread my money around other British dividend stocks in a variety of sectors. Having a suitably diversified income portfolio would allow me to sleep at night.

On a positive note, I see CAML’s payouts are likely to be covered more than twice by profits. This makes it very unlikely (but, naturally, not impossible) that those invested won’t receive their prized dividends. Couple this with the expected huge demand for the red metal over the next decade and I suspect CAML will be worth tucking away for a while. 

Target Healthcare

A final British dividend stock offering a chunky income stream is Target Healthcare (LSE: THRL). This real estate investment trust (REIT) owns a growing portfolio of care UK homes. 

Right now, the consensus among analysts is that the company will return 6.71p per share for FY21. That becomes a yield of 5.8% at the current share price.

As tempting as that dividend stream is, it’s important to remember that even the most predictable businesses can encounter crises. I probably don’t need to remind you of the awful impact of the coronavirus pandemic on Target’s industry last year.

Nevertheless, I think the investment case remains solid. Back in 2018, it was estimated that the number of people over 85 in the UK requiring care would double within 20 years. This should lead to higher demand for homes like those owned by Target. Such a development might prove even more lucrative if it’s able to capture a greater share of this fragmented market in the meantime.

This index is made up of the top 600 largest companies in the UK. It includes constituents of both the FTSE 100 and FTSE 250 as well as many other smaller growth stocks. 

I’m interested in these smaller companies. While it’s always sensible to add a selection of blue-chips to any portfolio, research shows smaller growth stocks can outperform their larger peers. That’s why I’ve always owned a selection of these stocks alongside my blue-chip holdings. 

FTSE All-Share stocks 

One company I’ve recently been reviewing for my portfolio is Target Healthcare (LSE: THRL). This business invests in purpose-built care homes. These homes are contracted out to care home operators on long leases. The average unexpired lease term across its portfolio is 28.9 years. 

As one would expect, this FTSE All-Share business is highly defensive. Indeed, while many landlords have been struggling to negotiate rent from tenants this year, Target collected 90% of rents due in its most recent period. It’s also been able to increase rents for some tenants. From its 73 operational properties, rents increased 0.3% on a like-for-like basis during the first half of 2020. 

Its strong rental and asset base have allowed Target to go shopping for new properties in the downturn. One new property and one new development site have been acquired this year. 

All of the above suggests to me this stock is a dependable income investment. Indeed, management is targeting an annual dividend of 6.7p per share, which could provide investors with a yield of 5.8%, according to my figures. I reckon that makes the company one of the best FTSE All-Share stocks to buy for income today. 

Tech leader 

I’ve also been considering tech group Gocompare.com (LSE: GOCO) for my FTSE All-Share portfolio recently. The firm, which is best known for its GoCompare price comparison site, has seen rapid growth over the past few years. Operating profit nearly doubled between 2015 and 2018. 

It looks as if 2020 is shaping up to be another good year for the group. Its latest trading update noted a 13% increase in revenue for the nine months to the end of September. 

What I really like about this business is the value of its brand. Most consumers are aware of GoCompare. For many, it’s the first port of call when comparing insurance products. This gives the group a massive competitive advantage, in my view.

Businesses with substantial competitive advantages tend to produce the best returns for shareholders over the long run because they don’t have to spend significant sums chasing competitors. I think the group’s latest trading update shows this effect in action. Even in one of the most challenging economic environments for many years, Gocompare has been able to register double-digit sales growth. 

I believe this suggests the firm’s long term outlook is better than many other FTSE All-Share constituents.

Market crash winner

Last week’s Q1 revenue update from online trading provider and FTSE 250 member IG Group (LSE: IGG) was short but definitely sweet for those already invested. 

Great value

With its counter-cyclical attributes, insolvency firm Begbies Traynor (LSE: BEG) is another stock to hold during tough economic times. Like IG, it also reported to the market last week.

In a statement delivered at its AGM, Executive Chairman Ric Traynor said that the number of new appointments taken on by the company had been “encouraging” and had helped increase its share of the market. Despite being disrupted by the coronavirus, the £120m cap’s property advisory and transactional services business had also managed a “solid financial performance”. Activity levels here are recovering faster than predicted.

Begbies will report its latest set of half-year numbers in December. Since insolvency levels could rise substantially between now and then as the government’s financial support for businesses ends, I think the shares look good value at 15 times forecast earnings.

The investment case becomes even stronger when you consider the dividends on offer. A predicted 3p per share payout in the current financial year translates to a yield of 3.3%.

Targeting income

A final income pick for nervous times is real estate investment trust Target Healthcare (LSE: THRL). It invests in, and rents out, modern care homes. This arguably makes it one of the most defensive businesses you’re ever likely to find on the market.

As evidence of this, Target reported collecting 96% of rent payable for the last quarter back in July. Another positive was that only five of its 71 homes (representing 15 of 4,925 beds) were reporting cases of Covid-19 at the time.

As a REIT, Target is required to return a big proportion of income to its shareholders. In FY21, this will likely be around 6.76p per share. Based on its closing price on Friday, that gives a yield of 6.2%.

When it comes to generating passive income with limited risk, it surely doesn’t get much better than this. Market crash or not, Target presents as a great dividend pick, I feel. Full-year results are due any day.

There are some choice small-caps out there managing to weather the storm however. Target Healthcare REIT (LSE: THRL) is one, and this comes as no surprise to this Fool at least. Target invests in care homes, a clearly-defensive endeavour and one with great earnings visibility, whatever broader economic conditions are like.

This is why City analysts expect annual profits to keep rising, despite the Covid-19 crisis. In the current financial year to June 2021, an 11% earnings improvement is anticipated. This leads to predictions of more dividend growth and, thus, a chunky 6% yield too.

Target Healthcare is clearly in the box seat to benefit from Britain’s rapidly ageing population. This makes it a great buy beyond the here-and-now. Yet it trades on a quite-undemanding earnings multiple of 15 times for this year. I reckon it’s a white-hot buy.

Internet sensation

Tritax Eurobox (LSE: EBOX) is another brilliant pick for dividend investors. I recently wrote a piece on its FTSE 250 cousin Tritax Big Box. I explained why providers of ‘big box’ warehousing distribution and warehousing hubs are onto a winner. It’s no secret that e-commerce is becoming increasingly big business. However, the rate at which some market experts expect this particular retail segment to swell suggests share pickers need to get on board in some way, shape, or form.

Experts at data research firm Statista, for example, expect the e-commerce channel to almost double in value over the next few years. They expect a market worth $3.53trn in 2019 will swell to be worth $6.54trn by 2022.

More big dividend yields

However, it’s important to note that Statista’s estimates were released in March. It’s a dot on the card that they fail to reflect the jump in e-commerce adoption as a result of coronavirus-related lockdown measures more recently. That forward forecast would likely be more bullish if calculated today.

So back to small-cap Tritax Eurobox. This is a company which operates a network of sites on the continent, but mainly in Central and Eastern Europe. Like its FTSE 250 relative, which operates solely in the UK, this puts it in markets where the internet shopping phenomenon is particularly large. Countries such as Germany and Poland have some of the fastest-growing e-commerce markets anywhere on the planet.

Therefore, it’s no wonder Tritax Eurobox carries a premium. City analysts reckon annual earnings will sink 28% in the current financial year to September. But its sound long-term outlook means that, in my opinion at least, it warrants a chunky forward price-to-earnings (P/E) of 23 times.

Besides, value-chasers can take consolation from Tritax Eurobox’s chunky dividend yields. At 4.9%, the small-cap provides a rare bright spot in a sea of dividend cuts, postponements, and outright cancellations.

This is one share I’m convinced could help you make a fortune over the long term.