The Value -- and Risk -- of REITs

Updated

The following video is part of our "Motley Fool Conversations" series, in which Motley Fool contributor and financial planner Dan Caplinger discusses topics from around the investment world.

Today, Dan looks at real estate investment trusts, which have gained in popularity as investors seek out income-paying investments. Although REITs span the real estate universe from shopping malls and office buildings to residential properties, Dan focuses on the popular mortgage REIT area, whose double-digit yields look especially attractive to investors. He points out the potential risks involved with mortgage REITs with a view toward helping investors decide whether their lucrative dividends are worth it.

REITs aren't the only way to get strong dividends. For some other ideas, check out The Motley Fool's free report, "Secure Your Future With 9 Rock-Solid Dividend Stocks." It's free. Just click here.

At the time thisarticle was published Fool contributor Dan Caplinger has no positions in the stocks mentioned above. The Motley Fool owns shares of Annaly Capital. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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