Latest news with #taxadvantaged
Forbes
12-08-2025
- Business
- Forbes
Why More Employers Are Adding 529 College Savings Plans
Years ago, I helped sign up one of the earliest corporate college savings '529' plans here in Southern California. It enabled a large entertainment-industry company to help their employees take advantage of this very popular way of saving for their kids' higher education. Parents loved this long term savings program, conveniently offered at work. Why 529s are growing in popularity: Employers are increasingly adding 529 college savings plans to their benefits packages. These tax-advantaged plans help employees save for education costs—from K-12 tuition to college and job training to apprenticeships. The federal SECURE 2.0 Act (effective in 2024) introduced major enhancements, including allowing certain unused 529 funds to be rolled into a Roth IRA. With student debt at record levels and talent retention a top HR concern, 529 plans offer a strategic, future-focused benefit that supports both financial wellness and workforce stability. The 4-1-1 on 529s: A 529 plan is a state-sponsored, tax-advantaged savings account for education expenses. There are no taxes on investment gains while funds grow. And withdrawals are tax free for qualified higher-education expenses. Considered a parental asset, they affect financial aid eligibility by just 5.(college, K-12 tuition, a parental asset, they have minimal effect on financial aid eligibility. One type, a prepaid tuition plan, locks in future tuition rates at today's costs. Another type, an education savings plan, is investment based and is popular among businesses and families. Why should businesses care now? Offering a 529 plan can be a powerful recruitment and retention too as employees, especially Millennials and Gen Z — are seeking financial wellness benefits. Education costs (for themselves or their children) are a top concern, and 529 support is increasingly viewed as a compelling, family-focused benefit. Moreover, employees now can roll over unused 529 plans (up to a $35,000 lifetime) into a Roth IRA, provided the 529 has been open for at least 15 years. (Certain other conditions apply, so check with your employer or your financial advisor before attempting a rollover.) The Roth rollover options adds long-term value and flexibility—eliminating the fear of 'wasting' funds if a beneficiary doesn't go to college. The Employer Contribution feature: Employers may contribute directly to an employee's 529 account, facilitate payroll deductions (employee-funded, employer-enabled),offer matching contributions (e.g., $100/month) or seed funding (e.g., $250 at onboarding or birth of a child). Employer contributions are generally treated as taxable income to the employee unless your state offers an exemption. Contributions are not deductible at the federal level, but over 30 states offer state-level deductions or credits. Some states (e.g., Indiana, Illinois, Colorado) offer employer tax credits, such as Indiana's credit of up to $1,500 annually. Important: Employers should clearly communicate any tax implications to employees during onboarding or benefits education. What's in it for employers? Offering a 529 plan helps an employer stand out in a competitive hiring market, support employee family financial goals and promote financial wellness, which promotes reduced stress and higher productivity. The plans are low cost, especially when structured as employee-funded and provide the option of combining with student loan repayment assistance. How to implement it: Choose a 529 provider from among a range of state-sponsored plans or national platforms. Decide on your contribution model: match employee contributions monthly or offer one-time seed money. Use direct deposit or third-party services (such as Gradifi, Paidly) to automate via payroll. Promote your program clearly, use HRIS data or surveys to measure engagement and tailor the program. And leverage voluntary models (Some states offer turnkey, no-admin options for employers (e.g., Colorado's CollegeInvest). Taxing and compliance implications: There is no federal deduction, but check for state-level benefits.'Parity states' like Arizona, Kansas, and Pennsylvania allow tax breaks for contributions to any state's 529 plan. There is a Gift tax exclusion for 2025: $19,000 per beneficiary ($38,000 for married couples)—useful for business owners and execs using 529s as part of wealth or estate planning. Post-tax contributions made via payroll are generally not subject to FICA. Note: Always consult a tax advisor or benefits attorney to ensure compliance with federal and state laws. Some common misconceptions about 529 plans: False: '529 plans are just for parents.' Fact: Anyone—including business owners—can open or contribute to a 529 for employees, family, or estate planning. False: 'Employer contributions are tax-free for employees Fact::They're usually taxable income unless a state exemption applies. False: 'We must use our state's plan.' Fact: Not always. Parity states offer tax breaks for contributions to any plan. False: 'If the child doesn't attend college, the money is wasted.' Fact: The money can be used for other forms of post-secondary education, such as trade school. And, thanks to SECURE 2.0, unused funds can be rolled into a Roth IRA (up to $35,000). False: 'It's too complex to manage.' Fact: Today's platforms and state programs make implementation simple—even for small businesses. False: 'If we can't afford matching, it's not worth it. Fact: Just facilitating payroll deductions and educating employees adds real value. Future trends and strategic positioning: Education savings is becoming a top-tier benefit, on par with health insurance and 401(k) and Gen Z—now dominant in the workforce—want support for family-building and debt reduction. 529s will increasingly integrate with financial wellness platforms, alongside HSAs, 401(k)s, and student loan repayment. States are likely to expand incentives and portability to encourage employer to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.
Yahoo
23-07-2025
- Business
- Yahoo
First Eagle Short Duration High Yield Municipal Fund Surpasses $1 Billion in Assets
The firm's municipal bond platform tops $8 billion; expansion includes previously launched tactical municipal opportunities interval fund NEW YORK, July 23, 2025--(BUSINESS WIRE)--First Eagle Investments ("First Eagle") today announced that the First Eagle Short Duration High Yield Municipal Fund (I Shares: FDUIX; A Shares: FDUAX; R6 Shares: FDURX) surpassed $1 billion in total assets as of June 30, 2025. Launched in January 2024, the fund's growth reflects sustained investor interest in short duration, tax-advantaged income strategies in what remains a dynamic interest rate environment. First Eagle's broad municipal bond platform now exceeds $8 billion in assets. The firm's offerings in this space were recently expanded by the June launch of the First Eagle Tactical Municipal Opportunities Fund (Class I: FTAIX), an interval fund designed to provide access to opportunistic strategies across the municipal credit spectrum. John Miller, Head and Chief Investment Officer of First Eagle's Municipal Credit team, commented, "Reaching this level of growth in a relatively short time speaks to the power of our disciplined, research-driven approach. We focus on our goal of rigorous credit work, active surveillance and selective positioning to build resilient portfolios that generate tax-exempt income without compromising quality or discipline." He added, "The successful launch of the Tactical Municipal Opportunities Fund last month demonstrates the flexibility and depth of our platform and our commitment to offering investors differentiated, opportunistic exposures. That flexibility is further reinforced by the continued growth of our flagship First Eagle High Yield Municipal Fund (FEHIX), which recently surpassed $7 billion in assets, underscoring the strength and resilience of our municipal bond strategies across market cycles." Frank Riccio, Head of US Wealth Solutions, noted: "Investor appetite for tax-aware income solutions continues to grow, and advisors choose carefully when selecting a manager. We're pleased to see the Short Duration High Yield Municipal Fund cross the $1 billion milestone and look forward to supporting our clients' evolving income needs with our growing municipal product suite." Carl Katerndahl, Chief Operating Officer of the Municipal Credit team, concluded: "The rapid expansion of our Municipal Bond platform reflects the confidence our clients have placed in John Miller and First Eagle. Together, we've built a highly skilled team of senior analysts and traders who are advancing our shared vision of delivering meaningful results in municipal credit." As of June 30, 2025, the First Eagle Short Duration High Yield Municipal Fund's 30-day SEC yield stood at 5.12% for Class I shares, with a taxable-equivalent yield as high as 8.65% for investors in the highest federal tax bracket. First Eagle Short Duration High Yield Municipal Fund—NAV, Distribution Rate and 30-Day SEC Yield by Share Class Data as of 30-Jun-2025 NAV Distribution Rate Subsidized 30-Day SEC Yield Unsubsidized 30-Day SEC Yield Class I (FDUIX) $10.16 4.72% 5.12% 5.12% Class A (FDUAX) $10.17 4.72% 5.19% 5.19% Class R6 (FDURX) $10.17 4.37% 4.75% 4.75% First Eagle Short Duration High Yield Municipal Fund—Average Annual Returns as of Month End Data as of 30-Jun-2025 YTDœ Since Inception Gross Expense Ratio¹ Net Expense Ratio Adjusted Expense Ratio² Fund Inception Date Class I (FDUIX) 1.43% 4.59% 1.58% 0.62% 0.60% Jan 2,2024 Class A (FDUAX) w/o load 1.21% 4.32% 1.47% 0.87% 0.85% Jan 2,2024 Class A (FDUAX) w/ load -1.29% 1.72% 1.47% 0.87% 0.85% Jan 2,2024 Class R6 (FDURX) 1.35% 4.61% 2.47% 0.62% 0.60% Jan 2,2024 S&P Short Duration Municipal Yield Index 1.81% 4.17% -- -- -- -- The performance data quoted herein represents past performance and does not guarantee future results. Market volatility can dramatically impact the fund's short term performance. Current performance may be lower or higher than figures shown. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Past performance data through the most recent month end is available at or by calling 800.334.2143. The average annual returns are historical and reflect changes in share price, reinvested dividends and are net of expenses. "With sales charge" performance for class A shares gives effect to the deduction of the maximum sales charge of 2.50%. Class I shares require $1 million minimum investment and are offered without sales charge. Class R6 shares are offered without sales charge. Operating expenses reflect the Fund's total annual operating expenses for the share class of the Fund's most current prospectus, including management fees and other expenses. 1. First Eagle Investment Management, LLC (the "Adviser") has contractually agreed to waive and/or reimburse certain fees and expenses of Classes A, I and R6 so that the total annual operating expenses (excluding interest charges on any borrowings, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, dividend and other expenses relating to short sales, and extraordinary expenses, if any) (''annual operating expenses'') of each class are limited to 0.85%, 0.60% and 0.60% of average net assets, respectively. Each of these undertakings lasts until 28-Feb-2026 and may not be terminated during its term without the consent of the Board of Trustees. The Short Duration High Yield Municipal Fund has agreed that each of Classes A, I and R6 will repay the Adviser for fees and expenses waived or reimbursed for the class provided that repayment does not cause annual operating expenses (after the repayment is taken into account) to exceed the lesser of: (1) 0.85%, 0.60% and 0.60% of the class' average net assets, respectively; or (2) if applicable, the then-current expense limitations. Any such repayment must be made within three years after the year in which the Adviser incurred the expense. 2. The Adjusted Expense Ratio excludes certain fees and expenses, such as interest expense and fees paid on Fund borrowings and/or interest and related expenses from inverse floaters. The Fund is currently in a "ramp-up" period, during which it may not be fully invested, and certain of these expenses may change over time. S&P Short Duration Municipal Yield Index measures the performance of high yield and investment grade municipal bonds with a duration of one to 12 years. 30-day SEC yield is a standard yield calculation developed by the Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund's filings with the SEC. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund's expenses. This is also referred to as the "standardized yield." The number is then annualized. This yield does not necessarily reflect income actually earned and distributed by the Fund and therefore may not be correlated with dividends and distributions paid. Had fees not been waived and or/expenses reimbursed, the SEC Yield would have been lower. Subsidized 30-day SEC yield includes contractual expense reimbursements and would be lower without those reimbursements Unsubsidized 30-day SEC yield excludes contractual expense reimbursements The distribution yield is calculated by multiplying the most recent monthly distribution by 12 to get an annualized total and then dividing the result by the Fund's NAV. It is the Fund's policy to make periodic distributions of tax-exempt income, net investment income and net realized capital gains, if any. Unless you elect otherwise, such distributions to you will be reinvested in additional shares of the same share class of the Fund at net asset value calculated as of the payment date. Taxable equivalent yields presented are based off of the Fund's distribution rate. The distribution rate is calculated by the most recent distribution, multiplied by 12 to get an annualized total and then divided by the NAV for each respective share class. It is the Fund's policy to make periodic distributions of tax-exempt income, net investment income and net realized capital gains, if any. Unless you elect otherwise, such distributions to you will be reinvested in additional shares of the same share class of a Fund at net asset value calculated as of the payment date. The distribution rate includes return of capital. The Fund intends to declare income dividends daily and distribute them monthly at rates intended to maintain a more stable level of distributions than would result from paying out amounts solely based on current net investment income by paying out less than all of its net investment income or paying out undistributed income from prior months (with any potential remaining deficiencies characterized as a return of capital at year end). The distributions might not be made in equal amounts, and one month's distribution may be larger than another. Distribution rate presented excludes any special dividends. Distribution rate indicates the annual rate received if the most recent share class monthly distribution paid was the same for an entire year. The rate represents a distribution and does not represent the total return of the Fund. Because the Distribution Rate is annualized from a single month's distribution, no investor actually received the rate in a given year. The distribution rate is calculated by annualizing actual dividends distributed to the monthly period ended on the date shown and dividing by the net asset value on the last business day of the same period. Risk Disclosures: The First Eagle Short Duration High Yield Municipal Fund ("The Fund") is new and may not be successful under all future market conditions. The Fund may not attract sufficient assets to achieve investment, trading or other efficiencies. Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise, while they typically increase their principal values when interest rates decline. Bonds are also subject to credit risk, in which the bond issuer may fail to pay interest and principal in a timely manner, or that negative perception of the issuer's ability to make such payments may cause the price of that bond to decline. The Fund may invest in high yield, fixed income securities that, at the time of purchase, are non-investment grade. High yield, lower rated securities involve greater price volatility and present greater risks than high rated fixed income securities. High yield securities are rated lower than investment-grade securities because there is a greater possibility that the issuer may be unable to make interest and principal payments on those securities. High yield securities involve greater risk than higher rated securities and portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Municipal bonds are subject to credit risk, interest rate risk, liquidity risk, and call risk. However, the obligations of some municipal issuers may not be enforceable through the exercise of traditional creditors' rights. The reorganization under federal bankruptcy laws of a municipal bond issuer may result in the bonds being cancelled without payment or repaid only in part, or in delays in collecting principal and interest. All investments involve the risk of loss of principal. Diversification does not guarantee investment returns and does not eliminate the risk of loss. The information is not intended to provide and should not be relied on for accounting or tax advice. Any tax information presented is not intended to constitute an analysis of all tax considerations. Investors should consider investment objectives, risks, charges and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the Funds and may be viewed at You may also request printed copies by calling us at 800.747.2008. Please read our prospectus carefully before investing. Investments are not FDIC insured or bank guaranteed and may lose value. Total Return Percentile Rank, Morningstar Category Percentile rank is a standardized way of ranking items within a peer group, in this case funds with the same Morningstar category. The observation with the largest numerical value is ranked one; the observation with the smallest numerical value is ranked 100. The remaining observations are placed equidistant from one another on the rating scale. Note that lower percentile ranks are generally more favorable for returns (high returns), while higher percentile ranks are generally more favorable for risk measures (low risk). Morningstar High Yield Muni Category: High yield muni portfolios invest at least 50% of assets in high-income municipal securities that are not rated or that are rated by a major agency such as Standard & Poor's or Moody's at the level of BBB (considered speculative in the municipal industry) and below. First Eagle Short Duration High Yield Municipal Fund Class I: The Morningstar percentile ranking for the First Eagle Short Duration High Yield Municipal Fund was derived using the total return of the performance figure associated with its MTD, QTD, YTD, and 1-year periods, as of 6/30/2025. Morningstar percentile rankings were: 73% for the Month-to-Date (132/201), 7% for the Quarter-to-Date (12/200), 3% for the Year-to-Date (4/197), and 1% for the 1-year (2/196) periods when compared against the High Yield Muni category. © 2025 Morningstar, Inc. All Rights Reserved. The information contained herein: 1) is proprietary to Morningstar; 2) may not be copied or distributed; and 3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. FEF Distributors, LLC ("FEFD") (SIPC), a limited purpose broker-dealer, distributes certain First Eagle products. FEFD does not provide services to any investor, but rather provides services to its First Eagle affiliates. As such, when FEFD presents a fund, strategy or other product to a prospective investor, FEFD and its representatives do not determine whether an investment in the fund, strategy or other product is in the best interests of, or is otherwise beneficial or suitable for, the investor. No statement by FEFD should be construed as a recommendation. Investors should exercise their own judgment and/or consult with a financial professional to determine whether it is advisable for the investor to invest in any First Eagle fund, strategy or product. The First Eagle Funds are offered by FEF Distributors, LLC, a subsidiary of First Eagle Investment Management, LLC that provides advisory services. © 2025 First Eagle Investment Management, LLC. All rights reserved. About First Eagle Investments First Eagle Investments is an independent, privately owned investment management firm headquartered in New York with approximately $152 billion in assets under management as of March 31, 2025.* Dedicated to providing prudent stewardship of client assets, the firm focuses on active, fundamental and benchmark-agnostic investing, with a strong emphasis on downside mitigation. With a heritage dating back to 1864, First Eagle strives to help clients avoid permanent impairment of capital and earn attractive returns through widely varied economic cycles. The firm's investment capabilities include equities, fixed income and currencies, alternative credit and real assets. For more information, please visit All figures related to assets under management (AUM) are preliminary figures based on management's estimates and as such are subject to change. *The total AUM represents the combined AUM of (i) First Eagle Investment Management, LLC, (ii) its subsidiary investment advisers, First Eagle Separate Account Management, LLC, First Eagle Alternative Credit ("FEAC") and Napier Park Global Capital ("Napier Park"), and (iii) Regatta Loan Management LLC, an advisory affiliate of Napier Park as of March 31, 2025. It includes $0.6 billion of committed and other non-fee-paying capital from First Eagle Alternative Credit, LLC and $3.1 billion of committed and other non-fee-paying capital from Napier Park Global Capital, inclusive of assets managed by Regatta Loan Management LLC. First Eagle Investments is the brand name for First Eagle Investment Management, LLC and its subsidiary investment advisers. View source version on Contacts Media Contacts First Eagle InvestmentsPholida Hedda NadlerMount Nadlerhedda@ 212-759-4440 Sign in to access your portfolio
Yahoo
09-07-2025
- Business
- Yahoo
Here's how the new Trump accounts work — and why financial experts don't love them
Pretty soon, every newborn American will be the proud owner of their very own 'Trump account.' President Trump's sprawling tax law creates a new, tax-advantaged investment account prefunded with $1,000 for each child born from the beginning of 2025 through the end of 2028. Kids born before this year are eligible for the IRA-style accounts but not the $1,000 seed money. The idea's backers say the accounts are a way to get all kids into saving and investing early in life, while helping them save for goals like college or a home. Learn more: How to start investing: A 6-step guide But financial advisers who spoke with Yahoo Finance warned that, aside from the free seed money, the benefits the accounts offer are relatively paltry compared to other tax-shielded savings options Americans already have available, including the 529 accounts parents use to put away money for college and IRAs for retirement. The new Trump accounts also come tied up with a fairly complex and potentially confusing set of rules. As a result, putting any money into them beyond what the government offers might not make sense for most families, they said. 'It's not very attractive,' Ann Reilley, CEO of Alpha Financial Advisors, said of the program. 'It just seems like they're complicating things for no reason.' By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Under the new program, parents will have the option to open Trump accounts for any child under age 18 at a bank of their choice. Contributions will be capped at $5,000 per year, including up to $2,500 tax-free from a parent's employer. The money grows tax-free until it's withdrawn and must be invested in a broad stock index. Account holders can make partial withdrawals when they turn 18 and access the full amount at age 25, but only for "qualified purposes" including paying for college, starting a business, or buying a first home. They get full access to the funds at age 30 to use for any purpose. Read more: How much should I save before going to college? Once cashed out, distributions will be taxed as long-term capital gains if the funds are used for a qualifying purpose. Money spent on anything else will be treated as ordinary income. Overall, it's a less generous deal than putting money into a 529 account for higher education or Roth IRA for retirement, since both of those options allow investors to withdraw their money entirely tax-free. Learn more: Which is better — a Roth IRA or a savings account? The Trump account could theoretically be useful for families who are already comfortable with their retirement savings and whose children don't plan to pursue college, since the money can be used for other purposes like homebuying without a penalty. But even then, there might be pitfalls. For instance: Say a child ends up spending the money on anything other than education, a business, or a house and gets hit with the higher ordinary income rate. In that case, their family would have been better off investing in a normal brokerage account, said Zach Teutsch, a managing partner at Values Added Financial. 'The giving kids money aspect is generally good,' Teutsch said. 'The account structure seems ill-considered.' He added that a family would need to be 'shockingly sure' that their child wasn't going to college before it would make sense to invest in a Trump account instead of a 529. The concept of providing every child a small, prefunded investment account isn't new in Washington. Progressives have long-pitched a version of the idea known as 'baby bonds,' which they've argued could help close the racial wealth gap. Among Republicans, Texas Sen. Ted Cruz is credited for originating the Trump account proposal — he called them Invest In America Accounts — which he has described as a way to help hook kids on investing and broader capitalist values. 'There are many Americans who don't own stocks or bonds, are not invested in the market, and may not feel particularly invested in the American free enterprise system. This will give everyone a stake,' Cruz recently told Semafor. The experiment is not especially expensive in the scheme of the GOP's massive tax package: Trump accounts will cost the government about $17 billion over 10 years, according to Congress's Joint Committee on Taxation. But Republicans appear to have kept costs down in large part by loading the proposal with restrictions that limit the value of the program, said Alan Cole, a senior economist at the Tax Foundation. 'It's like, thank you, government, for the free money, but I care about the usefulness,' Cole said. 'And realistically, this is the sixth or seventh best tax-free savings account option.' Jordan Weissmann is a Senior Reporter at Yahoo Finance. Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
2 No-Brainer High Yield Landlord Stocks to Buy Right Now
The average REIT has a yield of 4.1%. Realty Income is a net lease industry giant with a yield of 5.7%. Simon Property Group is a mall giant with a yield of 4.9%. 10 stocks we like better than Realty Income › Dividend investors are always on the hunt for the best combination of yield and company quality. Right now, you can get above-average yields from industry-leading companies in the real estate investment trust (REIT) sector. Giant high-yield landlords Realty Income (NYSE: O) and Simon Property Group (NYSE: SPG) are two companies that you might want to buy today. Real estate investment trusts were specifically designed to generate tax-advantaged income for investors. Property owning REITs like Realty Income and Simon are fairly simple businesses to understand, since they do exactly what you would do if you owned a rental property. The difference is that they do it at a much larger scale, which is the whole point. REITs allow small investors access to institutional-level properties. The tax-advantaged part of the equation comes about because REITs avoid paying corporate-level taxes if they distribute at least 90% of taxable earnings out as dividends. Uncle Sam isn't just giving away free money, though; shareholders have to treat the dividend income as they would regular earned income. But there's a workaround. If you buy a REIT in a Roth IRA, which is funded with after-tax money, you won't have to pay taxes on the REIT dividends you collect. For investors who are retired, buying REITs in a Roth is a great way to boost income while still minimizing the taxes you have to pay. There are a lot of REIT options, but most investors will be better off sticking with the biggest and best companies, like Realty Income and Simon Property Group. The average REIT is currently yielding around 4.1%, which is more than twice the yield on offer from the S&P 500 index (SNPINDEX: ^GSPC). Realty Income's dividend yield is even higher at roughly 5.7%. This isn't some fly-by-night operation, either. Realty Income is the largest net lease REIT, with a portfolio of over 15,600 properties. Although it is heavily focused on single-tenant retail properties, it also invests in industrial assets and is increasingly diversifying into other areas. For example, it has invested in casinos in recent years and has a partnership working to build data centers. Loans are a new platform, and Realty Income is also attempting to set up an asset management business to service institutional investors (which will generate fees to support shareholders' dividends). On top of all of this, the REIT is geographically diversified across the United States and Europe. Realty Income won't wow you with growth; it is simply too large for that. But if you want to own the biggest and best competitors, this is going to be the high-yield net lease landlord for you. Simon Property Group's dividend yield is around 4.9% today, also well above the REIT average and the yield on offer from the S&P 500 index. The company's focus is on owning malls, which are retail properties but have a very different dynamic from the types of properties Realty Income owns. A mall is like an ecosystem, with each tenant impacting the way the ecosystem operates. As the largest mall REIT, Simon Property Group owns a massive collection of traditional enclosed malls and outlet centers. Its portfolio spans the globe, though its foreign investments are largely outlet centers. Over the years, the REIT has increasingly focused its portfolio on the best malls, known as A malls. These tend to be modern, well-located properties that are capable of charging the highest rents because they draw the largest crowds. Simon is a very important partner to retailers. There is a caveat with Simon. It passes a huge amount of income on to investors, but during some recent economic recessions, it has cut its dividend. After the cut, however, the dividend has quickly started to grow again toward the precut level. In the case of the deep Great Recession, meanwhile, the dividend has now grown well beyond the precut level. Simon is a stock that you'll want to hold for the long term, perhaps even buying more shares when other investors are selling. Like any business, Realty Income and Simon Property Group will see their fortunes wax and wane over time. But their size and long histories of success make them strong, high-yield landlords to look at today. While they are attractive REIT investment choices most of the time, their higher-than-average yields could make each a nice addition to your stock portfolio right now. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,385!* Now, it's worth noting Stock Advisor's total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Reuben Gregg Brewer has positions in Realty Income and Simon Property Group. The Motley Fool has positions in and recommends Realty Income and Simon Property Group. The Motley Fool has a disclosure policy. 2 No-Brainer High Yield Landlord Stocks to Buy Right Now was originally published by The Motley Fool
