REITs
A REIT is a real-estate vehicle that generally must pay out at least 90% of taxable income. The dividend is rent and financing cash flow, not a SCHD-style quality screen.
What it is
Equity REITs own properties. Mortgage REITs own loans. ETF wrappers (and our high-yield REIT list) package many names.
REIT dividends are often ordinary income. Monthly pay is common because rents arrive monthly. That is accounting, not safety.
Hypothetical: $10,000 in a 4% REIT
Labeled hypothetical — not a live yield, AUM, or tax bracket.
- At a constant 4% yield, cash is about $400/year or ~$33/month before tax.
- If rates jump and the share price falls 15%, the printed yield rises and you still lost market value.
- Open the high-yield REIT list for names — do not use this 4% as anyone’s live yield.
Who this is for
- Readers building a monthly sleeve with property cash flow.
Who this is not for
- Treating a high-yield mortgage REIT as a bond.
What people get wrong
- Calling every REIT dividend qualified.
- Using Realty Income’s monthly habit as proof of safety.
How to check it on Dividend Wealth
The high-yield REIT list is the research screen.
Related lessons
- Preferred Stock ETFs · ETF Types
- Building a Monthly Income Portfolio · Portfolio Management
- Qualified Dividends · Taxes
FAQ
What is a REIT?
A company that owns or finances income real estate and generally must distribute at least 90% of its taxable income. Many REIT dividends are ordinary income, not qualified.
Why do REITs often pay monthly?
Cash flow from rents is relatively regular, so many equity and mortgage REITs distribute monthly. That is a schedule choice, not a safety rating.
Where is the REIT list?
/lists/high-yield-reits.
Educational only — not investment, tax, or legal advice. Dividend Wealth does not recommend 2x daily, inverse, or single-stock YieldMax products as “best income.” Yields change. Confirm filings and your own tax situation.