High-dividend stocks are quite popular in this low-yield environment, and REITs are a favorite among income investors because of their big yields.
For those unfamiliar with REIT investing, these high-dividend stocks are “real estate investment trusts.” As the name implies, REITs deal with real estate in some form — including trading mortgage paper, leasing commercial real estate, owning real estate investments and everything in between. And as a trust, REITs are structured in a way that mandates 90% of all taxable income be delivered back to shareholders.
This adds up to a formula that encourages high dividends for shareholders.
While REITs work this way in a broad sense, it’s important to know that they can vary widely based on their underlying businesses.
So which REIT investing strategies are working right now? Let’s start with these five high-dividend stocks as examples of which REITs are working best: