The REITs dividend calculator helps you project annual and monthly income from your real estate investment trust holdings. Enter up to 5 REITs to see total income, yield on cost, and portfolio value. Note: REIT dividends are typically taxed as ordinary income.
How to Calculate REIT Dividend Income
Calculating REIT dividend income is straightforward: multiply shares owned by annual dividend per share. For example, 200 shares of a REIT paying $2.40/year in dividends = $480 in annual income. Most REITs pay quarterly, so you'd receive $120 every 3 months.
Finding Dividend Information
Annual dividend per share can be found on financial sites like Seeking Alpha, Dividend.com, or the REIT's investor relations page. Look for "annual dividend" or "forward dividend" to get the current run rate. Note that REIT dividends can be cut if cash flow from properties declines.
Frequently Asked Questions
What are REITs?
REITs (Real Estate Investment Trusts) are companies that own income-producing real estate. They're required by law to distribute at least 90% of taxable income as dividends. REITs trade on stock exchanges like regular stocks and offer individual investors access to real estate returns.
How are REIT dividends taxed?
Most REIT dividends are taxed as ordinary income (not qualified dividends), meaning they're taxed at your regular income tax rate. However, the 20% pass-through deduction (Section 199A) may allow a 20% deduction on REIT dividends, effectively reducing the tax rate for many investors.
What is a good REIT dividend yield?
REIT yields typically range from 2-8%, with an average around 4-5% for diversified REITs. Higher yields (above 7-8%) can signal dividend sustainability concerns. Mortgage REITs (mREITs) often yield 8-12% but carry higher interest rate risk.
Should I hold REITs in a tax-advantaged account?
Since REIT dividends are typically taxed as ordinary income, many financial planners recommend holding REITs in tax-advantaged accounts (IRA, 401k) rather than taxable brokerage accounts. This defers or eliminates the tax on distributions.