Consider Equity Residential (EQR) or HCP Inc. (HCP). They offer dividend yields
of at least 8.5%, paid entirely in cash. Although their prices are up sharply
from their 2009 lows, their shares are also down more than 20% from the end of
2008.
But do your homework when looking for real estate investment trusts for securing
cash dividend yields. REIT giant Vornado (VNO) boosted its quarterly dividend to
95 cents per share from 90 cents last October. But after the first disbursement
in November of 2008 at the new rate was made in cash, the dividend payments
became less bankable. Vornado announced late last month that its regular
quarterly dividend of 95 cents per share, payable in June, would be paid
distributed as a combination of cash and shares of Vornado stock, with cash not
exceeding 40% of the aggregate payment. In the previous payout period, in March
of this year, investors who indicated a desire to receive their
95-cent-per-share dividend payments solely in cash ended up receiving 41.5 cents
per share in cash and 53.5 cents worth of Vornado stock for every share held.
While investors holding 11.3 million shares of the firm opted to receive their
payments solely in stock, those who didn’t specify a preference received 40%
of their dividend in cash (worth 38 cents per share) and 60% in stock (valued at
58 cents per share). Investors hopeful of pocketing regular cash payments for
the full amount of Vornado’s quarterly dividends shouldn’t hold their
breaths. They have yet to receive any indication that the “hybrid”
cash/stock payments will revert to quarterly checks amounting to 95 cents per
share held. Until the economy turns around, commercial property values begin to
firm and occupancy rates pick up, the outlook for a resumption of cash-only
dividends of 95 cents per share for Vornado are probably remote.
Simon Property Group (SPG) is following a similar policy, with its latest cash
payment of 12 cents out of an indicated quarterly dividend of 60 cents providing
a cash yield of less than 1%. Like Vornado, the remainder of Simon Property’s
dividend is in stock.

The only REIT that I've ever been in is Annaly (NLY). I like to trade around a
core position and to capture the large divvy. From what I understand this is
one of the better run REITs.

cause the recent problem they've had was building a debt position and still
paying out a high divy....eventually you get bitten.

check their balance sheets carefully. make sure you understand how they make
their money.