Which types of investments are considered to be able to pay dividends?

Dividends are typically payments made by a corporation to its shareholders from its profits. Among the options provided, Real Estate Investment Trusts (REITs) are known for paying dividends as they are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends. Unit Investment Trusts (UITs) can also distribute income to investors, primarily from interest earned on the fixed-income securities within the trust or from the profits made from selling stocks, thus providing potential dividend income as well.

Investing in REITs and UITs allows individuals to get dividends, making them a key consideration for investors looking for regular income. This is why this choice is recognized as the correct answer when identifying types of investments that can pay dividends.

Stocks, while they do have the potential to pay dividends, are not the sole type of investment that does so, which is why the first choice is limiting. Cryptocurrencies generally do not pay dividends, as they work on a different model and do not provide income in the form of regular cash payments. Insurance products, while they can have cash values or benefits, do not usually pay dividends in the traditional sense associated with stocks or REITs.