Invesco KBW Premium Yield ETF Offers $1.51 Annual Payout, High 9.1% Yield
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 19 2026
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Source: Fool
- High Yield Attracts Investors: The Invesco KBW Premium Yield Equity REIT ETF has paid out over $1.51 per share monthly over the past year, translating to a 9.1% yield based on Friday's close of $16.61, drawing interest from risk-tolerant investors despite the underlying risks associated with such high yields.
- Diverse Holdings Structure: The ETF's largest holding, Innovative Industrial Properties, focuses on leasing to licensed operators in the cannabis industry, and while its 15% yield is appealing, the stock has dropped 25% over the past year, indicating instability in its profitability.
- Disappointing Market Performance: Despite its high yield and monthly distributions, the Invesco KBW Premium Yield Equity REIT ETF has received Morningstar's lowest one-star rating over the past three, five, and ten years, reflecting its weak long-term performance with a 6% decline in share price over the past year.
- High Risk Assessment: Morningstar rates the ETF's risk score at 99 out of 100, indicating that its portfolio consists of many small- and mid-cap REITs, which, while offering high yields, also entail greater market volatility risks.
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Analyst Views on IIPR
Wall Street analysts forecast IIPR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IIPR is 61.33 USD with a low forecast of 44.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
1 Buy
2 Hold
1 Sell
Hold
Current: 47.860
Low
44.00
Averages
61.33
High
90.00
Current: 47.860
Low
44.00
Averages
61.33
High
90.00
About IIPR
Innovative Industrial Properties, Inc. is an internally managed real estate investment trust (REIT). The Company is focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. It acquires its properties through sale-leaseback transactions and third-party purchases. The Company owns approximately 109 properties comprising an aggregate of 9.0 million rentable square feet (including 666,000 rentable square feet under development/redevelopment) in 19 states, including Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Texas, Virginia, and Washington. Its subsidiary is IIP Operating Partnership, LP (Operating Partnership).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Invesco KBW Premium Yield ETF Offers $1.51 Annual Payout, High 9.1% Yield
- High Yield Attracts Investors: The Invesco KBW Premium Yield Equity REIT ETF has paid out over $1.51 per share monthly over the past year, translating to a 9.1% yield based on Friday's close of $16.61, drawing interest from risk-tolerant investors despite the underlying risks associated with such high yields.
- Diverse Holdings Structure: The ETF's largest holding, Innovative Industrial Properties, focuses on leasing to licensed operators in the cannabis industry, and while its 15% yield is appealing, the stock has dropped 25% over the past year, indicating instability in its profitability.
- Disappointing Market Performance: Despite its high yield and monthly distributions, the Invesco KBW Premium Yield Equity REIT ETF has received Morningstar's lowest one-star rating over the past three, five, and ten years, reflecting its weak long-term performance with a 6% decline in share price over the past year.
- High Risk Assessment: Morningstar rates the ETF's risk score at 99 out of 100, indicating that its portfolio consists of many small- and mid-cap REITs, which, while offering high yields, also entail greater market volatility risks.
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Invesco KBW Premium Yield REIT ETF Declares 7.72% Monthly Yield
- High Yield Attracts Investors: The Invesco KBW Premium Yield Equity REIT ETF boasts a current SEC 30-day yield of 7.72%, ranking among the highest in its category, drawing interest from risk-tolerant investors despite a gradual decline in its distribution rate since 2023.
- Distribution Performance: Over the past year, the ETF has paid out over $1.51 per share in monthly distributions, translating to an annualized yield of 9.1% based on a closing price of $16.61, but this high yield comes with investments in smaller, riskier REITs.
- Risk Assessment: Morningstar rates the ETF's risk score at 99 out of 100, indicating a high-risk profile, particularly due to challenges faced by its largest holding, Innovative Industrial Properties, which has recently encountered tenant defaults and dividend cuts.
- Market Performance Volatility: Although the ETF has rebounded this year, its shares are down 6% over the past year and 21% over the past five years, highlighting the tension between its high yield appeal and market volatility, necessitating careful evaluation of its sustainability.
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