With the economy gaining strength, this might be a good time to consider investing in commercial real estate. You can do that via real estate investment trusts [REITs]. REITs trade like regular stocks, but they don't pay U.S. federal income taxes as long as they pay out at least 90 percent of their taxable income to shareholders. On the downside, REIT dividends are mostly taxed as regular income instead of the lower 15 percent capital gains rate. So it's best to keep REITs in tax-sheltered accounts.
Dividend yields are analogous to the interest rate on a savings account. For a stock, your yield is the dividends you receive over a year divided by the price that you paid for the stock. So your yield would be 10 percent if you received $1 per share of dividends from a stock that cost you $10 per share. Currently, most property REITs are paying dividends equating to three percent to seven percent yields.
Source: Santa Cruz Sentinel
Related Articles:
- Love People, Use Dividend Stocks
- The 2012 Dividend Achievers
- Why Dividends Matter
- 2011 Was A Great Year For Dividend Stocks
- Utilities Stock Funds Were 2011's Bright Star
With REITs, You'll Fit Right In
Posted by D4L | Sunday, April 15, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Boring stocks to buy and hold almost always align with deeply established businesses. While they won’t offer the outstanding growth potentia...
-
The quick rise in interest rates over the past year turned investor sentiment toward REITs negative. Higher interest rates make it harder fo...
-
Indeed, with recession on the horizon, investors are increasingly emphasizing quality, safety and dividends in their portfolio selections. W...
-
Linked here is a detailed quantitative analysis of Texas Instruments Inc. (TXN). Below are some highlights from the above linked analysis: C...
-
A great year for dividend growth stocks is one in which there are few dividend cuts and fewer companies that failed to raise their dividends...
-
Verizon (VZ -1.75%) pays one of the biggest dividends in the S&P 500. The telecom giant currently yields 6.5%. That's one of the top...
-
Countless people dream of being able to pay their bills with the cash they receive from their investments. But it doesn't have to be jus...
-
Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to re...
-
Cash is king when you’re looking to add dividend stocks to your portfolio There’s ample reason for caution. In case you haven’t noticed, a l...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.