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What Is The Dividend Yield Of A REIT?

A Real Estate Investment Trust (REIT) is a type of investment that pools money from multiple investors to purchase and manage income-generating real estate properties. The dividend yield of a REIT refers to the ratio of the annual dividend paid by the REIT to its share price.

The dividend yield of a REIT can vary depending on several factors, such as the type of real estate assets the REIT invests in, the REIT’s financial performance, and market conditions. Generally, REITs are required by law to distribute at least 90% of their taxable income to their shareholders in the form of dividends.

To calculate the dividend yield of a REIT, divide the annual dividend per share by the current market price per share of the REIT. For example, if a REIT has an annual dividend of $2.00 per share and its current market price is $50.00 per share, the dividend yield would be 4% ($2.00/$50.00).