Income investors are in a difficult position. Interest rates remain near zero, meaning yields across fixed income have declined over the past several years. When it comes to stocks, the rally to all-time highs in the market has caused the average dividend yield of the S&P 500 index to decline to around 1.3%. This is why investors looking for higher levels of income can look to high-yield REITs.
Real estate investment trusts, or REITs for short, generally offer high dividend yields because they are required to pay out substantially all of their earnings to shareholders. This results in high payout ratios, but also high yields that are routinely several times that of the broader market. And in the case of the three stocks we’ll look at below, that is certainly true, given these three have above-market yields even when compared to other REITs. They are: Annaly Capital Management (NYSE:NLY), Apollo Commercial Real Estate Finance NYSE:ARI) and Omega Healthcare Investors (NYSE:OHI).
Source: InvestorPlace
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