Sector Strength: Utilities, REITs, Consumer Staples, and More

‹ Sector Strength: Utilities, REITs, Consumer Staples, and More
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REITs (Real Estate Investment Trusts) are another great option for dividend investing. They make their money owning and managing properties. Because law requires that they redistribute at least 90% of their taxable income to investors, they naturally have very high dividends. 

Risk between REITs varies greatly. While the 90% rule guarantees investors get regular dividends, some REITs invest in insecure properties like retail malls, which have been declining with the rise of e-commerce. REITs are very sensitive to changes in interest rates and the economy, so they are not the best investments during market downturns.

The Federal Realty Investment Trust (FRT) is a very consistent dividend king which invests in major coastal markets. While not an aristocrat, Realty Income is also very consistent with its dividend payouts

Source: Wall Street Prep

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