longtimeagocompany.com

REIT Dividends have traditionally been an attractive feature of investing in Real Estate Investment Trusts. These reliable monthly and quarterly payouts have historically attracted conservative, income-oriented and often blue-haired investors. These investors had no need for high octane capital appreciation and were very content to collect their monthly and quarterly checks while playing shuffleboard.

Unfortunately, those days are gone for now. A number of cash-starved REITs have chosen to take advantage of a new IRS ruling that allows them to satisfy their dividend payment requirements by paying dividends comprised primarily of more stock, not cash. Dividend-oriented investors are dumping the REIT income strategy as a result, and REIT share prices will remain under pressure until payment of cash dividends are resumed.