The basic concept of REITs is essentially the same regardless of the type. A REIT draws down relatively cheap fixed- and/or floating-rate debt, build or buys real estate and/or buildings, and gets cash flows from that property by leasing it out in some form. It could be to a business tenant, or to nightly tenants if it’s a hotel. The debt is serviced with the cash flow, and debt may get paid down, as well. After expenses are deducted, including taxes, 90% of the remaining earnings are distributed to shareholders. The more efficient the company cash flows, the higher the yield. Here are three REITs that yield more than 7%...
Independence Realty Trust Inc (NYSEMKT:IRT) has jumped on the trend of apartment rental properties. The business is booming because of a shortage of housing in many cities. IRT will lend money against these properties, but will also own and operate them. City Office REIT Inc (NYSE:CIO) is a much smaller star in the REITs universe, but I also like to have a mix of smaller plays because they have more potential to grow, and therefore generate capital gains as well as dividends. Starwood Property Trust, Inc. (NASDAQ:STWD) is a REIT that I used to avoid like the plague, thanks to ongoing irrational fears after the mortgage crisis. I just did not like commercial mortgage REITs. But I got over that fear, thanks to this REIT that has a dividend yield of 8.5%.
Source: InvestorPlace
Related Articles:
- 6 Dividend Growth Stocks With Strong Capital Appreciation
- 6 Higher Yielding Basic Materials Stocks With Growing Dividends
- 7 Dividend Growth Stocks That Could Make You Wealthy
- A Roadmap To Build Wealth With Dividend Stocks
- High-Yield Managed Distribution Policy Funds
3 High-Yield REITs Offering 7% or More
Posted by D4L | Monday, April 10, 2017 | 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...
-
In short, dividend-bearing stocks are one of the smartest approaches stock investors have available currently. The same is true in strong ec...
-
Finding cheap dividend stocks is critical for another reason. By the time the Federal Reserve meets for the second time in 2023, the central...
-
Investing in passive income can allow you to make money with minimal portfolio management. There are many types of investments to make passi...
-
Many companies make very predictable fixed dividend payments each quarter. When they do, their investors have a pretty good idea of how much...
-
As 2022 wraps up, many investors are likely looking for ways to position their portfolio for more macroeconomic uncertainty next year. After...
-
If your growth-investing days are over (or nearly so) and you're more interested in steady income, start your search with all-weather st...
-
Dividends drive significant returns for Berkshire Hathaway's portfolio. One common theme of Warren Buffett's Berkshire Hathaway is d...
-
With inflation appearing to have peaked and fears of a recession dimming somewhat, investors have some positive catalysts to look forward to...
-
Dividends can be an underrated source of income for investors. With so much volatility in the stock market right now, it can be comforting t...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.