Top federal tax bracket earners face a $22,200 annual tax hit on $60,000 of ordinary dividend income from REITs and BDCs held in taxable accounts, compared to no tax in Roth accounts. This tax drag compounds significantly over time, potentially costing $280,000 over 10 years and $730,000 over 20 years when reinvested at 5%. Qualified dividend payers like Johnson & Johnson and Coca-Cola have a smaller tax impact but still benefit from Roth placement. Investors should prioritize holding ordinary-income payers like Realty Income and Main Street Capital in Roth accounts to maximize tax efficiency and consider Roth conversions to reduce taxable income in high brackets.
Agree Realty, a retail net-lease REIT, pays dividends taxed as ordinary income, making Roth IRA the preferred holding for tax efficiency. With a 4.2% yield and monthly distributions, holding Agree in a Roth IRA avoids federal taxes that can consume 2...
Realty Income Corporation, a dividend aristocrat, is trading below its historical price-to-funds-from-operations ratio, making it an attractive buy. The company reported 6.6% year-over-year growth in adjusted funds from operations per share in Q1 202...
Realty Income REIT pays monthly dividends taxed as ordinary income, which can lead to substantial tax costs in taxable accounts, especially for investors in higher tax brackets. Holding these shares in a Roth IRA eliminates the tax on dividends, pres...
Realty Income Corporation reported a 12.2% revenue increase and 6.6% growth in AFFO per share in Q1 2026, prompting an increase in its 2026 investment guidance to $9.5 billion. The company’s strong investment volume, expanding private capital vehicle...
