""Because of the strong dividend income REITs provide, they are an important investment both for retirement savers and for retirees who require a continuing income stream to meet their living expenses. REITs' dividends are substantial because they are required to distribute at least 90% of their taxable income to their shareholders annually. Their dividends are fueled by the stable stream of contractual rents paid by the tenants of their properties," says REIT.com."
"With a yield of 18.71%, the ARMOUR Residential REIT ( NYSE: ARR) invests primarily in fixed-rate residential, adjustable-rate rate and hybrid adjustable-rate residential mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises or guaranteed by the Government National Mortgage Association. The REIT just declared a monthly dividend of 24 cents per share, which is payable on September 29 to shareholders of record as of September 15."
REITs offer passive income by owning managed portfolios of income-producing real estate and typically provide high dividend yields. REITs must distribute at least 90% of taxable income annually, and dividends are supported by contractual rents from tenants. Several REITs yield above 10%. ARMOUR Residential REIT (NYSE: ARR) yields 18.71% and invests in fixed-rate, adjustable-rate and hybrid residential mortgage-backed securities guaranteed by U.S. agencies. ARR declared a monthly dividend of $0.24 payable September 29; a $10,000 investment would purchase about 649 shares and yield roughly $1,870 annually at an annualized $2.88 dividend. Orchid Island Capital (NYSE: ORC) yields 20% and invests in leveraged residential mortgage-backed securities.
Read at 24/7 Wall St.
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