These REITs Pay Up to 12.3% But Should We Fight the Fed?

If you like dividends, check out the discounted cash flows currently available in REIT land. Real estate investment trusts (REITs) have hit the skids in recent months as investors have panicked about the Federal Reserve raising rates. Their worries bring value to us, and today we're going to highlight five REITs yielding 5.3% to 12.3%. Now, we income investors are fans of REITs because they pay out most of the profits to us as dividends. Congress created this business structure decades ago, and it included a mandate for dividends--REITs, in exchange for significant federal tax advantages, must dole out at least 90% of their taxable income as distributions back to us. But they have a big weakness: interest rates.