A lot changes when you shift from working to retirement, including how you invest. Most investors switch from building a nest egg to living off what they have managed to squirrel away. If the investors’ portfolio includes dividend stocks, their holdings can help “make ends meet” in retirement without the need to sell assets.
With that investing strategy in mind, W.P. Carey (NYSE: WPC) and Spirit Realty (NYSE: SRC) could make for good high-yield additions to any retirement portfolio.
Both W.P. Carey and Spirit Realty are real estate investment trusts (REITs), a corporate structure whose purpose is to throw cash off to investors. REITs push 90% of earnings to investors in the form of dividends in exchange for avoiding corporate-level taxation. Investors pay tax on the income at their personal income tax rate. However, if you put a high-yield REIT into a Roth IRA, that income becomes tax-free. So far, so good.