In uncertain times, investors often gravitate toward income-producing stocks. While it’s difficult to forego the opportunity for substantial appreciation that non-dividend stocks provide, the tradeoff for income stocks is reduced risk on the downside, as well as the regular monthly or quarterly dividend.
But finding high-yielding stocks without unsustainable payout ratios, risk of dividend cut or weak earnings can be tricky. That’s where Real Estate Investment Trust (REIT) stocks can hold an advantage. Because they are mandated to pay shareholders 90% of their taxable income, the yields tend to be higher than dividend stocks of other sectors.
