Old news sir. I posted that here already:
I think these REITs will pay lower dividends than multi family. Seems like their main motivation is to grow and acquire companies. 1% dividends. They are spending all their money acquiring more property and more debt.
Ok, my bad…
AMH is different from starwood (INVH). Starwood is taken over by INVH, one of the black rock companies.
They grow by taking over companies and real estate. By registering REIT, they need to share 90% of profit to share holders.
Even if they provide dividends, they are non-qualified dividends, considered as income rather than investment return for tax treatment.
High tax payers need to stay away from non-qualified dividends. If we are at 500k+ ( 37% IRS + 13.3% CA), whatever they pay 50% goes to tax.
If it is qualified dividends (XOM or BP or BA or AAPL), with 500k+ income, it will be 23.88% IRS+ 13.3% CA.