These Dividend REITs Are Discounted by 12%

Real estate investment trusts (REITs) have become quite popular with income investors in recent years. And why not? These “retirement makers” are required to give 90% of their profits to their shareholders as dividends. So, if you’re looking to retire on dividends, REITs are a natural place to look. Problem is, their popularity comes at a price. The Vanguard Real Estate ETF (VNQ) yields just 2.5% today—pretty lame by its standards: The Problem with Popularity: VNQ Pays Just 2.5% A disappearing dividend isn’t the only problem with VNQ. Like most ETFs it tends to overweight the largest REITs, which typically translates into both lower overall yields and slower dividend growth.… Read more