Profit Like a Landlord Without the Headaches

Tickers in this article: ADC LXP SIR

LXP is what I'd describe as an "alpha stock" among the diversified REIT sector.

If you're looking for another REIT that has an even higher payout yield (6.7%)and specializes in residential properties such apartments and single-family rental homes check out Select Income REIT (SIR) .

From a valuation perspective I'm ranking it as close to a #1 as any I'm aware of with the possible exception of Agree Realty (ADC) , which has a yield to price of 5.9%.

Carefully consider SIR by visiting its thoughtfully constructed Web site . The one-year chart below illustrates the price of SIR shares and its free cash flow. SIR ChartSIR data by YCharts

The free cash flow improved in the last quarter of 2012 yet the shares dipped when SIR priced a public offering of 7,000,000 common shares at a price of $24.00 per share. Since then the share price has rebounded 3.83% to $24.92. SIR remains one of the most attractively priced REITs today.

At the time of publication the author had positions in all the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Most large-cap stocks were once small and mid-cap stocks. Bryan Ashenberg is here to help you find the cream of the crop amongst the market chaos.