Income investors often allocate a sizeable portion of their portfolio to real estate investment trusts, or REITs, as these names typically pay high yields. Since REITs have to distribute at least 90% of their taxable income to shareholders via dividends, these stocks can be a good source of income.
Of course, yield shouldn’t be the sole purpose for making an investment, as the underlying company needs to have a strong business model that supports the dividend.
For those with a higher tolerance for risk, there are high yields that could be attractive. This article will examine three high-dividend REITs that might appeal to those investors with a higher tolerance for risk as the dividend payout ratios are elevated.
This post appeared first on InvestorPlace.