REITs and Dividend Income (2024)

REITs’ reliable income returns over time have been one of the chief drivers in the industry’s performance and a key attraction for investors saving for or funding retirement.

REITs are well suited to income-oriented investors, due to their historically high and reliable dividend payouts that have generally increased over time and have often grown faster that the rate of inflation.

Real estate companies generally earn reliable streams of income from long and stable tenant leases, and REITs must distribute at least 90 percent of their taxable income to shareholders as dividends.

This high dividend payout requirement means a larger share of REIT investment returns come from dividends when compared with other stocks. In fact, over the long-term , about half of listed REIT total returns have come from dividends, compared to less than one-fourth for the S&P 500.

Reinvesting REIT dividends can help retirement savers grow their portfolio’s investment, and historically steady REIT dividend income can help retirees meet their living expenses.

REIT dividends historically have provided:

  • Wealth Accumulation
  • Reliable Income Returns
  • Reduced Portfolio Volatility
  • Inflation Protection
REITs and Dividend Income (2024)
Top Articles
Latest Posts
Article information

Author: Jamar Nader

Last Updated:

Views: 5455

Rating: 4.4 / 5 (75 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Jamar Nader

Birthday: 1995-02-28

Address: Apt. 536 6162 Reichel Greens, Port Zackaryside, CT 22682-9804

Phone: +9958384818317

Job: IT Representative

Hobby: Scrapbooking, Hiking, Hunting, Kite flying, Blacksmithing, Video gaming, Foraging

Introduction: My name is Jamar Nader, I am a fine, shiny, colorful, bright, nice, perfect, curious person who loves writing and wants to share my knowledge and understanding with you.