2 High-Yielding Dividend Stocks Worth the Risk and 1 That Isn't
Healthcare-connected real estate investment trusts (REITs) combine the recession-resistant medical sector with the high-yield dividends that REITs are known for.
That doesn't mean everything has been rosy for these stocks this year, because rising interest rates are hitting REITs from two directions. Rising borrowing costs cut into the float between what the REITs pay in financing for their investment properties and what they earn from tenant leases, at least in the short term. Plus they make their investments less attractive to investors because higher returns are offered by income securities that aren't as risky.
However, this struggling environment, while lowering share prices for many REITs, can make them more attractive as their dividend yields increase. Global Medical REIT (NYSE: GMRE), Omega Healthcare Investors (NYSE: OHI), and Medical Properties Trust (NYSE: MPW) all offer dividends with yields of 8% or more, but only two of these companies are worth the risk.
Source Fool.com
