REIT Dividends Are Like Snowballs: All You Need Is Wet Snow And A Long Hill

Published Mon, 11 Mar 2013 05:37:36 -0400 on Seeking Alpha

Last week fellow Seeking Alpha writer David Van Knapp and I were both quick to defend a ridiculous article that was meant to derail the all important dividends paid by real estate investment trusts (REITs). As any "semi-intelligent" investor knows, REITs distribute (by law) at least 90 percent of their taxable income to shareholders annually in the form of dividends and that is what makes the 53 year-old asset sector so special. Accordingly, any company that qualifies as a REIT is permitted to deduct dividends paid to its shareholders from its corporate taxable income. But more often, most REITs remit at least 100 percent of their taxable income to their shareholders and therefore owe no corporate tax. In a previous Seeking Alpha article I explained the value proposition (for REITs): It's not hard to see why investors are attracted to the idea of high-dividend-paying stocks. On the surface,... Read more



Stock name                                 ISIN Last trade   P/E Earnings/Share Dividend/Share Dividend yield
WHITESTONE REIT
US9660842041 13.68   38.0 0.36 1.14 8.29
OMEGA HEALTHCARE INVESTORS
US6819361006 31.88   25.5 1.25 2.32 7.36
HCP
US40414L1098 32.87   0.0 -0.43 2.30 6.96
WP CAREY & CO
US92930Y1073 64.11   35.4 1.81 3.90 6.06
MEDICAL PROPERTIES TRUST
US58463J3041 14.70   21.3 0.69 0.88 6.01
ENTERTAINMENT PROPERTIES TRUST
US29380T1051 70.49   23.0 3.06 3.84 5.57
INLAND REAL ESTATE
US4574612002 10.61   70.7 0.15 0.57 5.38
MONMOUTH REAL ESTATE INVESTMENT
US6097201072 11.89   35.0 0.34 0.64 5.36
VENTAS
US92276F1003 66.33   49.9 1.33 2.92 4.40
REALTY INCOME
US7561091049 59.90   56.0 1.07 2.39 3.99
NATIONAL RETAIL PROPERTIES
US6374171063 45.33   34.9 1.30 1.74 3.88
WEINGARTEN REALTY INV
US9487411038 37.63   21.1 1.78 1.46 3.88
DIGITAL REALTY
US2538681030 94.66   83.8 1.13 3.52 3.71
TANGER FACTORY OUTLET CENTERS
US8754651060 35.47   16.6 2.13 1.30 3.70
RETAIL OPPORTUNITY INVESTMENTS
US76131N1019 20.23   72.2 0.28 0.72 3.56
KIMCO REALTY
US49446R1095 29.59   18.5 1.60 1.02 3.49
EDUCATION REALTY TRUST
US28140H1041 42.39   86.5 0.49 1.48 3.46
DUKE REALTY
US2644115055 23.67   13.8 1.71 0.72 3.04