Why? Because elite landlordssimply keep raising their rents. These higher cash flows translate to higher dividends, and higher stock prices, regardless of what the Fed is up to. Let’s consider the case ofVentas (VTR), which kept on hiking its payout as Uncle Sam’s 10-year IOU rallied ...
By having REIT status, a company avoids most or all of the corporate income tax. A regular corporation makes a profit and pays taxes on its entire profit, then decides how to allocate its after-tax profits between dividends and reinvestment. A REIT simply distributes all or almost all of ...
One year of Amazon-powered disruption, and VNQ’s dividends are back to their 2013 levels. Yikes. But VNQ is, of course, a flawed index. It’s “low cost” – but so what? Investors who buy it are getting what they pay for. A better idea is to cherry pick the firms who do have...
REITs must pay 90% of taxable income as shareholder dividends, typically more than most dividend-paying companies.5 Risks of Non-Traded REITs Non-traded REITsor non-exchange traded REITs do not trade on a stock exchange, which opens up investors to special risks such as: Share Value:Non-trad...
10 Things You Need to Know About REITs #9: How Their Dividends are Taxed REIT shareholders face an income tax liability that can be complex and difficult to understand. Each dividend payout from the REIT to its shareholders is composed of a mix of funds that are acquired by the REIT from...
Ultimately, the account you use to invest in REITs determines the tax treatment of your dividends. In a tax-deferred account like an IRA, you avoid paying taxes on dividends each year, in part because you aren’t pocketing the money yet. Dividends get reinvested and lumped together with your...
It can be generalized to other asset classes.While REITs (and some MLPs) are the only security types that report FFO, it is clear that every dividend-paying investment has a dividend yield. This makes the dividend yield valuation technique an appropriate method for valuing REITs, MLPs,BDCs, ...
AREITis a fancy name for a tax-advantaged company thatinvests in real estate. In exchange for not paying tax at the corporate level, REITs are required to pay out 90 percent of their taxable income as dividends, so they typically have much larger dividends than regular companies. ...
The most reliable REITs have a track record of paying large and growing dividends for decades. High returns: As noted above, returns from REITs can outperform equity indexes, which is another reason they are an attractive option for portfolio diversification. Liquidity: Publicly traded REITs are ...
DRW tracks investment results for dividend-paying real estate companies in developing and emerging equity markets. DRW's weighting strategy makes it an attractive choice for foreign real estate investment. “Weighting by yield makes a lot of sense in real estate investments,” says Kostya Etus, se...