Skip to contentHome page Seeking Alpha - Power to InvestorsOct 07, 2026, 7:45 AM ETVNQ, GOOD, GNL, BDN, ALX, MPT, HR, CLPR, NXRT, OLP, BFS, BRT, HIW, IIPR, CHCT, AHRT, UHT, DEI, DEA, PINEPhilip Eric JonesInvesting GroupSummaryHigh-yield 'mousetrap' REITs consistently underperform, with average returns lagging the VNQ by 1090–1380 bps due to dividend cuts and price declines.Dividend Safety grades of F indicate a roughly 40% chance of a cut within 12 months, making these REITs especially risky for income-focused investors.Nine REITs, including CLPR, BDN, CHCT, GOOD, NXRT, GNL, ALX, BRT, and AFCG, currently offer yields above 6.85% but have severe Dividend Safety concerns.Investors should scrutinize high-yield REITs with poor safety grades, considering reallocation to avoid capital loss and income reduction.Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Sasun Bughdaryan/iStock via Getty ImagesThe temptation always exists to reach for high yield as a source of income and a buffer against volatility. But the yield you see is not always the yield you get. Companies can and will cutMore on my IG serviceThis article was written byPhilip Eric Jones3.03K FollowersPhilip Eric Jones is a financial writer, educator, artist, and inspirational speaker. He writes about investing for retirement with a focus on Growth stocks and REITs. He is a contributor to the investing group iREIT®+HOYA Capital. The service features a team of analysts focusing on real income-producing asset classes that offer the opportunity for reliable income, diversification, and inflation hedging. Learn More.Analyst’s Disclosure: I/we have a beneficial long position in the shares of IIPR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.A Buy, Sell, or Hold rating in this article does not constitute a Buy, Sell, or Hold recommendation. All investors should exercise their own due diligence before investing in any stock.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsTo ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.Is this happening to you frequently? Please report it on our feedback forum.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.