For the most part, investors are attracted to blue-chip stocks For good reason: These companies usually offer consistent compounding over a long period of time. However, if you’re looking to juice your portfolio income by including some high yield reit (above 6% in today’s market) makes sense. That said, with higher yield potential, we should be more cautious in our REIT selection. Let us now check out some of the possible options available in the market.
Why REITs Often Yield Higher Than Blue Chips
REITs Income investors generally rank high on the list as they are mandated to distribute at least 90% of taxable income to shareholders to enjoy tax benefits. With the stable nature of the rental income earned from their properties, it is no surprise that REITs are more geared towards income generation than blue-chip companies, which retain earnings to grow their businesses. While REITs are more suitable for investors focused on income generation, stability of distribution payouts is extremely important…
