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When reviewing some of the top yielding REIT's listed at WallStreetNewsNetwork.com, I came across an interesting stock, actually an interesting Real Estate Investment Trust. It is a railroad, Pittsburgh & West Virginia Railroad (NYSEMKT:PW), a debt free company founded in 1916 that pays a yield of 4.7%. The company owns and leases a 112 mile railroad which runs from eastern Ohio to western Pennsylvania.

Earnings for the quarter ending year end were up 1%. However, quarterly earnings dropped at year end from 13 cents a share to 12 cents a share.

Because the company distributes at least 90% of its taxable income to its stockholders, it qualifies as a REIT under the Internal Revenue Code, thereby avoiding double taxation, once at the corporate level and once at the individual level.

This is a very illiquid stock which is lucky to trade 500 shares a day.

For other high yield REITs, go to WSNN.com.

Disclosure: Author does not own the above stock.
Source: When Is a Railroad Not a Railroad? When It's a REIT