REITs are faced with the economic uncertainty in the global market and are vulnerable to rising interest rates. Those REITs with dividend growth potential can rise above market volatility a bit better. It is also important that investors consider the tax implications for these tools, as they do not fall under the 15% qualified dividend rate. Most of their dividends are taxed as ordinary income. [Mortage REITs Stumble After QE3]
Market Vectors Mortgage REIT ETF
Tisha Guerrero contributed to this article.