This development is important for investors as REITs get special tax considerations and often provide high payouts.
People who work just enough to qualify for Social Security benefits get very high payouts relative to their contributions.
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The bad news is that the very low interest rate that has produced record high payouts is also producing record low distribution rates.
Profits have also come from high and risky leverage, new products of dubious value to the non-Wall Street economy and insider dealing from mergers and acquisitions that generate fees and high payouts life-changing payouts to executives at the companies sold while destroying value and often jobs.
At current prices, I believe a portfolio of dividend-paying stocks, REITs, and MLPs with high and rising cash payouts is the most sensible option for most investors.
How much longer can they stubbornly hold on to the high Wall Street-pleasing payouts?
Another issue with relative plans is that the payouts may be high, even if the company performs poorly.
Investors used to rely on Europe's telecommunications operators for their high dividend yields, but now such payouts are seen as a sign that cuts may be on the way.
But its low profile has translated into an average annual total return over the past decade of 4.14%--dominated by the dividend it has paid and raised every year--that crushed the average annual total return of the broader market--characterized by low payouts, low yields and high growth expectations--of negative 1.81%.
However, payouts for the 24% with high balances would be less certain, with the level of returned money depending on the level of bank assets recovered.
The premise is that dividend payers do not their payouts based on trading environment and that the high yields are a sign of a bottom in these shares.
The cost of paying such benefits, which are partly linked to inflation and offer payouts to surviving spouses, is simply too high now that many retirees are surviving into their 80s.
Leupold believes most buyers are focused on the high yield and don't appreciate or even care how weakly payouts are covered.
"Some REITs have high yields for a reason, " says mutual fund manager Andrew Davis--the payouts are vulnerable.
Lloyds, along with all the other main High Street lenders, has had to set aside billions of pounds to cover the cost of payouts to home-buyers who had been mis-sold PPI along with their mortgage.
They may even have heard this tantalizing detail: With five-year averaging, lump sum retirement payouts are taxed at rates as low as 7.5% , no matter how high a taxpayer's ordinary rate.
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