3 REITs To Buy With 10% Dividends
The global economy is still recovering from the pandemic, the S&P 500 is trading at an all-time high and unprecedented government stimulus spending has investors concerned about hyperinflation and rising interest rates. With all the uncertainty in the market at the moment, many investors are seeking the dependability of dividend stocks.
Whether the market is up, down or sideways, a dividend payment from a solid company is always reliable. Despite the economic shutdown, many public companies are swimming in cash and choosing to return that cash to investors in the form of dividends and buybacks.
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High-Yield REITs: The average dividend yield for S&P 500 companies is at 1.49%, but there are plenty of real estate investment trusts (REITs) that pay much higher yields than that. REITs often have particularly high yields because they are required to distribute at least 90% of their taxable income to investors each year.
With Treasury yields at historically low levels and a growing number of corporate bond yields dropping below 0% around the world, investors can find reliable income in REIT dividends.
The only red flag for investors to watch out for when it comes to high-yielding dividend stocks are stocks that have endured steep declines, driving up their dividend yields relative to their share prices. But even many underperforming stocks can continue to pay their dividends as long as their business is healthy enough.
See also: Best REIT Diversified Stocks Right Now
Where To Find 10% Yield: Here are three REITs to consider that currently have double-digit dividend yields.
Annaly Capital Management, Inc. (NYSE:NLY)
Annaly Capital Management is a REIT that specializes in investing in AAA-rated mortgage-backed securities. Annaly shares are up 68.9% in the past year and the REIT also pays a 10% dividend yield on top of those gains.
Sachem Capital Corp (NYSE:SACH)
Sachem Capital is a real estate finance company that specializes in originating, underwriting, funding, servicing and managing a portfolio of short-term loans secured by first mortgage liens on properties. Sachem’s share price has skyrocketed 309.8% in the past year, but the stock still pays nearly a 10% dividend.
Capstead Mortgage Corporation (NYSE:CMO)
Capstead Mortgage is a mortgage REIT that invests primarily in adjustable-rate agency residential mortgage-backed securities. Capstead shares are up 113.4% in the past year, and the REIT still pays nearly a 10% dividend.
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