Buying REITs? Why You Shouldn't Look at Dividends Alone
There's a reason so many investors are big fans of REITs, or real estate investment trusts. REITs are companies that own and operate different properties, and they're a great way to invest in real estate without having to take on the risks of buying property yourself.
Another big perk of owning REITs? Getting to collect dividends.
REITs are actually required to pay at least 90% of their taxable income to shareholders as dividends. Because of this, REITs commonly pay higher dividends than the average stock. And as an investor, that's a good thing.
Source Fool.com
