For investors of Real Estate Investment Trusts, the appeal of the investment is usually pretty closely tied to the typically large dividends these companies pay out. But to focus on the dividend first is akin to putting the cart before the horse.
Before a REIT can pay a dividend, it must first create income. In the video below, Motley Fool contributor Jay Jenkins dives into the income engine of one such REIT, Resource Capital Corporation , and discovers that in this case, this REIT is more of a lender than a direct investor in real estate.
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.
The article How Resource Capital Corp. Makes Its Money originally appeared on Fool.com.
Fool contributor Jay Jenkins has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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