As 2009 winds on, the list of REIT dividends being paid in stock grows ever longer (Update: CBL says it will resume paying dividends in cash in Q2, SPG says it will resume cash dividends sometime in 2010 and NRF has already done so). Here is a complete, current list, with prices and "yields" updated daily at the close. If you invest in this bunch, expect your bank account to grow smaller.

The reason: the only thing these stock dividends represent in the short-term is a tax liability with almost no cash. You will still be obligated to pay taxes on the "income". In the fourth quarter, Vornado and Northstar have elected to pay out just enough cash (40%) to cover your federal nut, but that's small comfort if you need your dividends to pay the rent. For the first quarter of 2009, Northstar declared an all cash dividend. I still love Northstar, but if you're in it for the dividends, it's caveat emptor for these REIT stocks:

REITs Paying Dividends In Stock Prices & Yields Updated Daily at the Close
REIT Name	Sector	Last Price	Change	Yield	% Paid in Stock	Quotes/News
AIMCO	Apartment REIT	$4.36	+0.21	9.30%	75%	AIV
Anthracite Capital	Mortgage REIT	$4.36	+0.21	9.30%	90%**	AHR
CBL & Associates	Retail REIT	$4.36	+0.21	9.30%	90%**	CBL
Developer's Diversified Realty	Retail REIT	$4.36	+0.21	9.30%	90%	DDR
Diamond Rock Hospitality	Hotel REIT	$4.36	+0.21	9.30%	60-90%**	DRH
Hospitality Properties Trust	Hotel REIT	$4.36	+0.21	9.30%	TBA**	HPT
JER Investors Trust	Mortgage REIT	$.32	+0.00	Eliminated	Previous 90%	JERT.OB
Lexington Realty Trust	Diversified REIT	$4.36	+0.21	9.30%	10%**	LXP
Macerich	Retail REIT	$4.36	+0.21	9.30%	90%	MAC
Northstar Realty Finance	Mortgage REIT	$4.36	+0.21	9.30%	60%**	NRF
One Liberty Properties	Diversified REIT (NNN)	$4.36	+0.21	9.30%	90%	OLP
RAIT Financial	Mortgage REIT	$4.36	+0.21	9.30%	90%**	RAS
Simon Property Group	Retail REIT	$4.36	+0.21	9.30%	80%	SPG
Sunstone Hotels	Hotel REIT	$4.36	+0.21	9.30%	90%	SHO
UDR	Apartment REIT	$4.36	+0.21	9.30%	75%	UDR
Vornado Realty Trust	Office & Retail REIT	$4.36	+0.21	9.30%	60%	VNO

** Anthracite has signaled its intention to pay 90% of its dividends in stock (it is unclear what effect AHRs recent settlement with its secured/unsecured lenders will have on this), but has not yet declared such a dividend. Diamond Rock and RAIT Financial have done the same, but the splits remain unclear. Northstar paid a 60% stock dividend in Q4, but paid an all cash dividend in Q1. in Q1 2009, LXP reduced the amount of dividends paid in stock from 90% to 10%, but at the same time they cut their dividend by 45% . HPT eliminated its dividend in Q1 but said it intends to pay a dividend in Q4, and that it may include both cash and stock. CBL announced in Q1 that it would resume its cash dividend in Q2.

With these stock dividends, REITs are able to preserve prolong the agony REIT status and cash in the hopes that the capital markets will someday become viable funding sources again. Clearly however, investors are betting that some REITs' ability to pay cash dividends on the IOUs they are now distributing is about as likely as the W being voted back into office.

Unfortunately, I can't imagine any capital-starved REIT not electing to take advantage of this revenue ruling (at least to some extent). Undoubtedly, this will further erode confidence in the sector and prolong the recovery in REITs.

Click here for a list of Apartment REITs
Click here for a list of Healthcare REITs
Click here for a list of Hotel REITs
Click here for a list of Industrial REITs
Click here for a list of Mortgage REITs
Click here for a list of Non-Traded REITs
Click here for a list of Office REITs
Click here for a list of Retail REITs
Click here for a list of Storage REITs
Click here for a list of all REITs
Click here for a list of REIT ETFs
Click here for a list of REIT Funds

Disclosures: None at the time of publication
apartment reits, office reits, mortgage reits, reit, reits