Real estate investment trusts (REITs) can be great income-producing investments. They tend to offer much higher dividend yields (4% on average these days compared to a sub-1.5% dividend yield on the S 500). Meanwhile, the best ones aim to consistently increase their payments.

W.P. Carey (NYSE: WPC) and EPR Properties (NYSE: EPR) are ideal REITs for those seeking a sustainable and growing income stream. They're much better options than the much higher-yielding Annaly Capital Management (NYSE: NLY), which might need to cut its dividend once again.

Annaly Capital Management currently offers a jaw-dropping dividend yield of nearly 13%. That's almost 10 times higher than the S 500. While mortgage REITs like Annaly tend to have higher yields, this one seems to be at a higher risk of reduction than others in the sector.

Continue reading

Source Fool.com