REIT Dividend Yield Calculator
Calculate REIT dividend yield, FFO multiple, and total return.
Compare equity REITs against your target yield with quarterly distribution analysis.
REIT Dividend Yield
A REIT (Real Estate Investment Trust) must legally distribute 90% of taxable income as dividends to maintain tax-exempt status at the trust level. This makes them income-focused investments with naturally high yields.
The basic formula: Dividend Yield % = (Annual dividends per share / Share price) × 100
For quarterly REITs: Annual dividends = Quarterly dividend × 4
Typical REIT yield ranges (2026):
| REIT Type | Typical Yield |
|---|---|
| Equity (apartments, retail, office) | 3-6% |
| Industrial / data center | 2-4% (lower yield, higher growth) |
| Mortgage REIT (mREIT) | 8-15% (high but volatile) |
| Healthcare / senior housing | 4-7% |
| Specialty (cell tower, prison, casino) | 3-5% |
| Self-storage | 3-5% |
| Net-lease (single-tenant) | 5-7% |
Compare yield to:
- 10-year Treasury yield (the “risk-free” baseline)
- S&P 500 dividend yield (~1.5-2%)
- High-yield savings account (HYSA, ~4-5%)
- Investment-grade bonds (~5-6%)
If a REIT yields less than the 10-year Treasury, you’re paying for growth potential. If it yields 3% above, you’re paid for the higher risk vs. Treasuries.
FFO (Funds From Operations): the better metric: REITs use depreciation aggressively, so reported earnings (EPS) understate real cash flow. FFO (or AFFO) is the true earnings metric: Price/FFO ratio is REIT equivalent of P/E ratio
| P/FFO | Valuation |
|---|---|
| Under 12 | Cheap (or in trouble, investigate) |
| 12-18 | Fair value |
| 18-25 | Premium (high growth or quality REITs) |
| 25+ | Expensive (data centers, cell towers historically) |
Yield trap warnings: A very high yield (above 10%) often signals:
- Dividend at risk of being cut (payout ratio > 100% of FFO)
- Sector in distress (e.g., office REITs post-pandemic)
- Mortgage REITs leveraged into rate-rising environment
- Capital structure stress
Always check the FFO payout ratio — if FFO doesn’t cover the dividend, the dividend will be cut.
Tax considerations:
- REIT dividends are mostly ordinary income: taxed at marginal rate
- Hold REITs in tax-advantaged accounts (IRA, 401k, Roth) when possible
- Some REIT dividends are “qualified”: verify with annual 1099
- 199A deduction (20%) applies to REIT dividends in non-qualified accounts (2017 TCJA)
REIT total return = Yield + FFO growth + multiple expansion The yield is just one piece. A 4% yielder growing FFO at 5% per year delivers ~9% total return without needing multiple expansion.
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This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
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