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Apple Hospitality REIT Offers Dividend Yield Above 7%

Apple Hospitality REIT Inc shares yield over 7%. Investors should assess if this yield is sustainable, as dividends play a key role in total stock market returns.

Date: 
AI Rating:   6

Dividend Yield Insight
Apple Hospitality REIT Inc (APLE) is currently offering a dividend yield above 7%, based on its monthly dividend annualized to $0.96. This attractive yield can be critical for investors looking for income, as dividends have historically contributed significantly to total stock market returns.

Although the yield appears appealing, the sustainability of this dividend yield is crucial to consider. Dividends typically correlate with a company's profitability; therefore, careful evaluation of Apple Hospitality's financial health and dividend history is necessary. If its profitability shows volatility, the continuation of this dividend could be at risk.

Moreover, the historical example of the iShares Russell 3000 ETF (IWV) illustrates how dividends can impact total returns dramatically over extended periods. While the stock saw a nominal decrease, the dividends provided a much more favorable return on investment, emphasizing the importance of focusing on dividend yields when considering investments.