You and I know why people buy real estate investment trusts (REITs). They’re income machines that are literally mandated to take the lion’s share of their profits and put them back into shareholders’ hands as cash dividends.
It’s no secret. Just about anyone who buys into REITs know that they produce far bigger dividends than your typical stock.
But put most people in front of a Yahoo! Finance or Google Finance stock chart, and they’re suddenly struck by selective amnesia. Because they forget that these charts only consider price gains and don’t include REITs’ outsized dividends.
Let’s look at some of the optical delusions investors find when they stumble across the charts–then look at what happens once you split out price and total returns (with dividends).… Read more