Plenty of real estate investment trusts (REITs) pay dividends, but some of them have much higher yields than the rest. REITs are designed to appeal to income-oriented investors rather than those interested mainly in growth. Sometimes these types of investments deliver both, but the big dividends are usually the main attraction.
REITs are organized to pay out most of their taxable income to investors in the form of dividends. Since they’re often able to raise rents on owned properties, many have the means to keep up with, or sometimes to beat, inflation. The downside is that when inflation wanes, dividends can shrink and prices can drop.
