Hotel REIT Dividends Get Slammed
One of the most important things an investor can do is to understand what they own. Hotel real estate investment trusts (REITs) are a prime example of this today, as the impact of COVID-19 has effectively -- though hopefully temporarily -- destroyed their businesses. Left in the wake of this disaster is a string of dividend cuts that has income investors reeling. Here's the lesson investors should take from this painful trend.
CorePoint Lodging (NYSE: CPLG) announced it was suspending its dividend after the first quarter on April 9. Park Hotels & Resorts (NYSE: PK) made a similar call on March 13. Apple Hospitality's (NYSE: APLE) last monthly dividend payment occurred in March. The list could keep going, with names across the hotel real estate investment trust niche making the same painful decision to reduce dividends or simply stop paying them altogether.
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Source Fool.com
