Real estate trusts, or REITs, offer some of the highest yields around, and for good reason. They’re legally obligated to pay shareholders 90% of their earnings as dividends.
But, like most things in the stock market, high yields don’t necessarily mean suitable investments. Not all REITs are created equal; some might be investing in the wrong piece of real estate, some might be on the hook for property that’s falling in value, while some might be contending with high vacancy rates and moth-eaten properties.
