With interest rates low, investors should seek income-generating assets that pay well beyond the 10-year bond and provide price appreciation upside in the process.
And the best possible assets to combine both attributes are real estate investment trusts (REITs).
You see, REITs allow you to cash in on a company's cash flow generated by properties across various sectors.
REITs provide one significant tax benefit that will enable investors to capture more of the cash flow.
And since these investment vehicles distribute at least 90% of its taxable income to shareholders, they are not subject to corporate taxation.
Today, I'm taking a look at two dividends that provide additional upside.
More importantly, they pay investors annual dividends greater than 8% and have reduced downside given their superior positions in their respective real estate sectors.