The highest dividend yields can be very tantalizing. As long as a stock yielding 15% doesn't lose value, you'll make 15% in one year! In more cases than not, however, an astronomical yield is a bad sign for a stock. Since dividend yields and stock prices move in opposite directions, a high yield usually means that investors have begun to worry about the business, and driven down its stock price.
Most real estate companies are organized as real estate investment trusts, or REITs. They do this so that they can get around the double taxation issue that most investors face. REITs don't pay taxes as long as they distribute at least 90% of their income as dividends. The investor holding shares of the REIT then has to pay taxes on those dividends as though they are income. This differs from most dividends which are taxed at a lower rate.
Source: Motley Fool
Related Articles:
Dividend Growth Stocks News
- Asian Dividend Stocks To Consider For Your Portfolio - Yahoo Finance - 7/16/2025
- European Dividend Stocks To Watch In July 2025 - Yahoo Finance - 7/16/2025
- Middle Eastern Dividend Stocks To Consider In July 2025 - Yahoo - 7/16/2025
- Middle Eastern Dividend Stocks To Consider In July 2025 - simplywall.st - 7/16/2025
- 3 Overvalued Dividend Stocks - Barchart.com - 7/15/2025
________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.