Squirreling Away REIT Dividends

[Dustin Ruhl]

In investment, there is a wide array of stock opportunity for investors to seize that pay dividends; this option is used frequently by individuals who are looking for a viable income on hand. Although it may be assumed that all dividend payouts are the same, this is not the case, as proved by REIT dividends, which contain much more appeal than the normal dividend payout due to their advantageous nature. For example, normal dividends leave cash in the hands of managers, who tend to instantaneously re-route the cash for their own personal or company needs. REIT dividends, on the other hand, have the excellent advantage of giving more cash immediately to investors so that they may do more with their dividend returns prior to managers levying the money elsewhere or simply withholding returns and payouts to the investor. REIT successfully allows companies and individuals to avoid the temptation of wastefully spending excess free cash and, instead, manages those payouts in the form of a REIT dividend that benefits investors and companies alike. It also forces a 90% pay out of the dividend, which prevents sly companies from refusing to pay out the dividend. Subsequently, these dividends paid out by REIT from earnings are not taxed! This means that not only does REIT reduce the abuse of cash flow but it is also a very manageable tax-efficient income that allows an investor to obtain and retain a reliable current income. Thus, REIT is by far the most cost-efficient dividend that exists for investors who are looking for a dividend payout that gives more cash to the investor, prevents company finance abuse, and relieves costs for the wary taxpayer.

Key Takeaways:

• In the current investment landscape, dividends can provide certainty about a company's financial status
• REITS are required by law to give out the majority of their income as dividends
• In the current market, REITS are one of the best ways to take advantage of the strength of dividends

"Dividends are also attractive for investors looking to secure current income."

Read more: https://www.forbes.com/sites/bradthomas/2017/04/10/squirreling-away-reit-dividends/