July 4, 2019

5 Real Estate Stocks to Buy for Dividend Income


Real estate stocks have become a popular income investment vehicle. Most operate as real estate investment trusts (REITs). These REITs are supposed to pay at least 90% of their income in the form of dividends. In exchange, REIT do not have to pay income tax on the net income generated from their properties.

For this reason, REITs tend to pay higher dividends than most stocks. The average S&P 500 stock now generates a dividend yield of 1.9%. The average equity (meaning non-mortgage) REIT currently yields an average 3.9% return.


However, some pay a much higher dividend and can sustain that payout for several years. This occurs even as lifestyle changes and technology affect the demand for and use of properties. In our dynamic economy, these five real estate stocks have maintained strong, steady dividends amid the changes, Consequently, I believe they are good stocks to buy.


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