AGNC Investment Corp.: Why I Would Prefer Half the Dividend and 100% More Certainty
I am a dividend investor, which dramatically influences the way I look at stocks. Dividend yield, however, is only one of the important factors I consider.Another really important issue for me is dividend consistency. Here's a look at two real estate investment trusts (REITs), one with an alluring double-digit yield, to explain why yield shouldn't be the only thing a dividend investor considers.Real estate investment trusts were specifically created to pass income on to shareholders via large dividend payments. The key is that REITs can avoid corporate-level taxation if they distribute at least 90% of their taxable income to shareholders. In reality, most REITs pay out more than that, but the key is that the REIT structure is all about dividends.Continue reading
I am a dividend investor, which dramatically influences the way I look at stocks. Dividend yield, however, is only one of the important factors I consider.
Another really important issue for me is dividend consistency. Here's a look at two real estate investment trusts (REITs), one with an alluring double-digit yield, to explain why yield shouldn't be the only thing a dividend investor considers.
Real estate investment trusts were specifically created to pass income on to shareholders via large dividend payments. The key is that REITs can avoid corporate-level taxation if they distribute at least 90% of their taxable income to shareholders. In reality, most REITs pay out more than that, but the key is that the REIT structure is all about dividends.
