1 Ultra-High-Yield Dividend Stock to Avoid Like the Plague and 2 to Buy Instead
Big dividend yields can be alluring. They make it seem easy to turn a little bit of money into an attractive income stream.
Unfortunately, many higher-yielding dividends are at high risk of getting cut if market conditions deteriorate. That is likely the case with The Necessity Retail REIT (NASDAQ: RTL) and its 14.3% dividend yield. Because of that, yield-focused investors should avoid that stock and instead consider buying Energy Transfer (NYSE: ET) or Verizon (NYSE: VZ). They offer much more sustainable high-yielding income streams.
The Necessity Retail REIT is undergoing a major strategic shift. The real estate investment trust (REIT) started the year as American Finance Trust, a diversified REIT with retail, office, and warehouse properties. However, the company sold off most of its office properties earlier this year, acquired a large shopping center portfolio, and rebranded as The Necessity Retail REIT to showcase its focus on owning necessity retail properties.
Source Fool.com
