Are Dividend REITs Reliable?

Nicklaus, Player, Palmer: These three legendary golfing champions were all successful because of habits built on repeatability and consistency. Conversely, these same routines have also helped propel many of the leading real estate investment trusts (REITs) into dividend champions. Dividend consistency is the scorecard for fixed-income investors and the quality of the dividend is the mark of a champion stock.

Traditionally, REIT investors have been attracted to REITs, in substantial part, for their stable and rising dividends, and a significant yield remains important to most investors. However, with the recent increase in REITs’ popularity among equity investors looking for strong total returns, together with the recognition of the importance of creating value through the deployment of retained earnings, conservative payout ratios are a very desirable REIT attribute.

Source: Forbes

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