Dividends4Life: Don’t Be Intimidated by the 11% Yield on This Stock

REITs operate a little differently than most typical companies. Since they are considered trusts, investors are viewed more as owners than shareholders. And REITs must pay out 90% of their taxable income in the form of dividends to its “owners.” This is why quality REITs are very good investments for solid income when the economy is healthy.

New Residential Investment Corp (NYSE: NRZ) stock has had a decent year so far, up over 9% year to date. But the thing about this real estate investment trust (REIT) is not its stock performance — which is nice — but its massive dividend yield, which currently sits at 11.6%. That isn’t a typo. 11.6%.

Source: Income Investors

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