Big Dividend Yields We Wouldn't Buy for Today

By Jordan Wathen – Jul 25, 2014 at 2:00PM

NYSE: NNN

Nnn REIT

Market Cap

$7B

Today's Change

(0.86%) $0.35

Current Price

$40.96

Price as of April 23, 2024, 4:00 p.m. ET

Here's two high-dividend stocks we wouldn't pay up for today.

What do National Retail Properties (NNN 0.86%) and Public Storage (PSA 0.30%) have in common?

REITs are known for their big dividend yields -- by law, 90% of their earnings have to come back out to shareholders. But the chase for yield can be daunting, especially with so many other investors willing to pay higher and higher prices just to receive a repeatable dividend.

In the following video, Motley Fool contributors Jordan Wathen and Patrick Morris explain why National Retail Properties and Public Storage might not be the best dividend stocks to buy now.

Jordan Wathen has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.