#reits

#reits

"Because of the strong dividend income REITs provide, they are an important investment both for retirement savers and for retirees who require a continuing income stream to meet their living expenses. REITs' dividends are substantial because they are required to distribute at least 90% of their taxable income to their shareholders annually. Their dividends are fueled by the stable stream of contractual rents paid by the tenants of their properties," says REIT.com.

With house prices still high, mortgage rates stuck just under 7%, and plenty of economic uncertainty, consumers are once again seeing the virtues of renting.

Stability and dependability of dividend income is generally of greater importance to retirees than higher yields in their portfolios.

Investors shouldn't fret too much about the safety of Vanguard ETFs' yield; many REITs have robust balance sheets and resilient cash flows.