Ditch These 5 REIT Duds, Grab This Bargain-Priced Pair Instead

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Real estate investment trusts (REITs) are one of the market’s best sources of high yield. But they can also be one of its searing sources of heartburn.

For your sanity’s sake, and for the good of your retirement savings, avoid the five high-yielding REITs I’m going to warn you about today. Then reinvest that money into the sure-fire 8% yielders I’ll highlight after that.

REITs are set up, by design, to be income powerhouses. That’s the deal. They get to evade Uncle Sam, and in return, they have to funnel the lion’s share of their profits to shareholders. But a mandate only goes so far – if a REIT has less cash to redistribute, simple math says you and I suffer.…
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What could be better than receiving a raise every year? How about getting more cash in your pocket, and increasing your net worth?

Owning high-quality REITs (real estate investment trusts) with track records of consistently growing dividends is a proven strategy that delivers income today and rewards you with attractive gains for retirement, too.

Let’s consider three well-known REIT names to show how dividend growth can drive price appreciation, and generate outsized returns. There is no magic formula. It really boils down to common sense. A dividend cut or stagnant pay-out can spell disaster, while a growing dividend rewards investors two ways.

Well-Covered Dividends Matter

Real estate investment trusts own hundreds or even thousands of properties, with an enormous number of restrooms, parking lots and roofs that must be maintained. …
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About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

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