What are Rich Uncles’ Dividends?
Our investors love getting cash every month. Ever wonder how we pay it?
First, what are dividends?
Dividends are distributions of a company’s earnings, declared by its board of directors. Corporations which pay dividends commonly distribute to shareholders once per quarter, although they may distribute dividends more or less often. Dividends are commonly measured by “yield” - or the ratio that indicates how much a corporation pays out in dividends each year relative to its share price. Dividends are most commonly distributed in cash but can also be distributed in the form of stock or property.
How do we earn money to pay dividends?
In short, we collect rent from the tenants who lease our buildings and use that rent to pay dividends to our shareholders. That’s it. We, like all REITs, are required by the IRS to distribute 90% of our annual taxable income to our shareholders, so the vast majority of rental revenue we produce each year gets paid to our shareholders in the form of monthly cash dividends. We may use other sources of income to pay dividends, including the deferral or waiver of management fees, but unlike other REITs, we do not use proceeds from share sales to fund dividend distributions.
We buy property
We collect rent
You get dividends
A few things to know
Investors can earn dividends in proportion to their share ownership
Every share you buy pays you a dividend, so the more shares you own, the more dividends you will be paid at the end of each month.*
Dividend distributions are prorated for the duration of ownership
If an investor purchases shares on the first day of the month, they would receive an initial dividend that reflects ownership for the entire month. But if an investor purchases shares halfway through the month, their initial dividend amount would directly correspond to the number of days they owned their shares during the first month.