Real estate investment trusts (REITs) are some of the best options for investors looking to generate stable dividend income. This is because publicly traded REITs are required to distribute at least 90% of their taxable income to shareholders annually, as per Securities and Exchange Commission (SEC) rules.
The need for high-dividend-paying stocks is rising as the markets snap out of its latest relief rally resulting from poor earnings posted by tech titans. Even though the Dow Jones Industrial Average (DJIA) index is poised to register the highest monthly gains in nearly 30 years this October, it is still down 9% year-to-date. As market volatility still remains sky-high, REITs with high dividend yields seem to be an ideal hedge against the current market risks.
