Danger Lurks for These High-Yield Dividend Stocks
The COVID-19 crisis has been a trial by fire for the real estate investment trust (REIT) sector. Mortgage REITs were the first casualties, then the crisis moved to retail and mall REITs.
Many mall REITs were overleveraged before the coronavirus crisis grabbed hold of the economy and were suffering from a loss of share to online retailers. Then office REITs were hit by stay-at-home orders as many smaller businesses were unable to make the rent.
For two REITs in particular, there are further issues beyond the COVID-driven recession. Both are suffering from issues that were exacerbated by the pandemic and won't go away once it is over. Both these companies have higher dividend yields than their peers, which can be a signal that something is amiss. A yield that looks too good to be true often is.
Source Fool.com
