Passive Income Stream Or Yield Trap - Are High Dividend REITs Worth The Risk? What if it was possible to make 10%, 20% or more in annual dividend income on a real estate investment trust (REIT) stock? Does the idea of a double-digit dividend yield conjure up images of a new sports car, yacht or mansion? Well, not so fast. REIT stocks with double-digit dividend yields are among the highest risks on the market. An investor could earn a 12% dividend, only to see their stock drop 20% in that year. That first dividend is nice, but what if the company cuts the next year’s dividend by 55%? Here are a few examples of REITs with ultra-high dividends and the performance risks they’ve demonstrated in the past. Orchid Island Capital Corp. (NYSE: ORC ) is a finance company that invests in U.S. residential mortgage-backed securities. The Florida-based company initiated an IPO in March 2013 at a price of $14.50. And from the very beginning, it paid a monthly dividend of $0.135 for an approximate annual yield of 11%. Investors who bought ORC at the IPO price happily captured an even larger dividend yield the following year when ORC raised the dividend to $0.18 per month.