REIT Dividend Yield Comparison Calculator
Compare dividend yields across multiple REITs. Calculate after-tax income and find the best REITs for your income goals.
Equal amount invested in each REIT
Qualified: 0/15/20%, Ordinary: 10-37%
How is REIT dividend yield calculated?
Dividend Yield = (Annual Dividend per Share / Stock Price) × 100. For example, if a REIT pays $3.00/year and trades at $60, the yield is 5%. REITs must distribute 90% of taxable income as dividends, so yields are typically 3-6% for equity REITs and 8-12% for mortgage REITs.
What are the tax implications of REIT dividends?
Most REIT dividends are taxed as ordinary income (10-37% tax brackets), not the lower qualified dividend rate (0-20%). This is because REITs don't pay corporate tax. However, you may qualify for a 20% pass-through deduction under QBI rules. Hold REITs in tax-advantaged accounts (IRA, 401k) to defer taxes.
What is a good REIT dividend yield comparison?
Compare yields within the same REIT type: Equity REITs (3-6% typical), Mortgage REITs (8-12% but volatile), Hybrid (5-8%). A yield >10% may signal distress or unsustainable payout. Compare payout ratios (AFFO payout should be <80% for safety). Higher isn't always better - check sustainability.
How do I compare different REIT types?
Equity REITs (own properties): 3-6% yield, moderate risk, tied to property values. Mortgage REITs (lend money): 8-12% yield, higher risk, sensitive to interest rates. Compare: Price/FFO ratio (15-20 is fair), AFFO payout ratio (<80% safe), property type diversification, debt levels (debt/equity <1.5x).