Dividend yield versus total return when you already own land that pays nothing

My land holdings produce no income and I'm fine with that, the whole point was appreciation and patience. So when I look at REITs I have to decide what job they're doing in the portfolio, and there are two honest answers with different consequences.

Job one is income. REITs must distribute most of their taxable income, and yields in the 4 to 6 percent range are normal for the sector. That's cash arriving on a schedule against acres that arrive nothing. If I'm buying REITs to balance out dead land, a higher current yield is the point and I should weight toward the names that pay well.

Job two is total return. Yield is only part of the 9 percent long-run number, the rest is price appreciation, and the sectors with the structural tailwinds described for 2026 into 2027, data centers and senior housing and industrial, are not usually the fattest current yields. Weighting for yield can walk you straight into the challenged parts of the market. That's the trap where a 9 percent payout is the market telling you something.

There's also a plain tax layer, since REIT distributions are mostly nonqualified and the standard suggestion is holding them in a tax-advantaged account. How much that matters depends on your own situation and a licensed tax professional is the right person to ask.

Which job would you have them do. I've argued myself around this circle three times.