The Easy Step REIT Investors Can Take to Build More Wealth
Real estate investment trusts (REITs) have to pay out 90% of their taxable income as dividends, which allows them to avoid corporate-level taxes. That generally makes these property landlords great dividend payers, which is why income-focused investors tend to like them. But what if there was another tool at your disposal that could make investing in dividend paying REITs even better? Luckily there is, and it's super easy to use.
A lot of dividend investors get caught up in one simple number -- dividend yield. The bigger the better! And, to be fair, dividend yield is important on many fronts. For example, it is a tangible return on your investment that can be used to pay living expenses in retirement. Also, dividend yield can be used as a valuation tool, with historically high yields suggesting a stock could be attractively priced.
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Source Fool.com
