Lately I've been thinking about investing more in real estate investment trusts in my IRA. Right now I am invested in NLY, which has had a shaky stock price record - though it does pay a very nice dividend yield (~10%).
I've been thinking lately that maybe it is too risky to just hold a single stock, so I figure that perhaps buying a REIT ETF might be the safer play - but, the dividend yield from REIT ETFs is SOOO much lower than 10%. For example, Schwab's REIT pays like around 3%.
Anyways, this pretty much confounds me since by law a REIT is required to pay out a very high percentage of its income as a dividend. I am wondering why these REIT ETFs don't pay high dividends.
Submitted May 09, 2019 at 06:50PM by AkashReddit http://bit.ly/2Had3f3
