REITS are often invested in mortgage backed securities exclusively, or in addition to the property they own so they can lose when interest rates rise. You can look at the chart of a few from last spring to summer and see in June they suffered for example. Since REITs are required to pay out most of their earnings to remain tax exempt they may have to raise funds by secondary offerings of stock which could dilute your holdings of the company. Also, not sure if all of them are, but the one I held a few years ago had it's distributions as non-qualified dividends, which has a different tax situation than normal qualified dividends.

By law, REIT'S must pay out 80% of their income as dividends. You will do much better with this. A lot of them give a discount on re-invested dividends so you get more bang for your buck.

A REIT is a real-estate investment trust. It could be for apartment buildings, shopping centers, office buildings, or a combination of. Go with a well known REIT like Inland Etc. You will probably have to buy in through a broker.

Nothing in life is guaranteed, except maybe death, taxes and political corruption.

High quality dividend stocks, such as xom, pg, jnj, have been excellent in the past. REIT's don't have the track record of those mentioned.

But, look at Sears, Fannie Mae, Freddie Mac, Kodak, Polaroid, Washington Mutual, among many others. (probably) nothing lasts forever (except the bitter memory of an investment gone wrong)

What are the dangerous of an REIT vs a high dividend stock. I am young and would like to hold for good to receive the dividends and reinvest them for future years. If the REITS are paying around 10% yields vs high dividends stocks 5% yields. Would it be smart to buy REITS instead?...Do not completely understand REITS, but feel there would be more risk with having such nice yields