Dividend logo

Real estate investment trusts, or REITs, have long been popular with investors when it comes to finding income.

That popularity only became stronger during the recent prolonged period of low interest rates. The reason is easy to understand. Thanks to their tax structure, REITs are required to pay out the majority of their cash flows back to investors. Therefore, they pay out much higher dividends than the average stock.

However, it’s that tax structure that could get you a call from Uncle Sam.

Holding REITs in the wrong accounts can come back to bite you in the form of a high tax bill and potentially negate much of their higher yields. The trick to getting the most from your REIT dividends is holding them in the right place to keep Uncle Sam at bay.

Check out our dedicated page for REITs to find the REITs that pay the highest distributions.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Food%20packaging
News

Packaging Company with 36+ Years of Dividend Increases Maintains Position on Best Dividend Stocks List

$850 billion. That’s a big number. It also happens to be how much consumers spent this holiday...

News

Kaiser Aluminum Increases Dividend by 9.09%

Each day, companies and funds across the globe announce upcoming dividend payouts. In our ...

News

Royal Bank Of Canada Leads 57 Securities Going Ex-Dividend This Week

There are 57 securities going ex-dividend this week starting Monday, January 21st. For income...