21st May 2020

Dividend Investing: REITs

Stock mentioned in this article
American Tower Corporation
3.76%
dividend yield
$173.35
per share
AMT:NYSE
Ticker

Diversification is probably one of the most important things for investors of any kind. Many people choose to diversify their portfolio with real estate but that comes with a lot of specific issues. An interesting alternative is Real Estate Investment Trusts (REIT), which can help alleviate the disadvantages of investing in physical real estate and provide a high yield (often payable monthly).

Keys points about REITs

  • They offer a higher yield than most of the dividend stocks
  • Their prices fluctuate differently than stocks
  • They have to pay 90 % of their income via dividends
  • Their income comes mostly from passive rent leases

REITs Pitfalls

  • There is usually not very great price growth
  • As Interest rates rise some REITs can lose value (it also works oppositely)
  • Everything that affects rents is a risk factor: Trends, moving into big cities, a slower economy

What to focus on when comes to REITs

  • Management of the company
  • Portfolio of real estate assets
  • Dividend history
  • Debt level
  • Volatility (lower the better)

We would not recommend creating a solely REIT portfolio or use these funds as the only means of investing, but REITs can be used as a great tool for diversification and an easy start to real estate investing for people who don’t want to or cannot buy physical real-estate.

You can also add (multiple) REITs to our dividend calculator! You weighted average dividend yield and estimated returns. We created a list of all public tradeable REITs where you can explore more than 200 Real Estate Investment Trusts listed on NYSE and NASDAQ.

Some of the bigger and popular REITs are:

You can also add (multiple) REITs to our dividend calculator! You weighted average dividend yield and estimated returns. We created a list of all public tradeable REITs where you can explore more than 200 Real Estate Investment Trusts listed on NYSE and NASDAQ.

Some of the bigger and popular REITs are:

American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 181,000 communications sites.

Simon Property Group Inc
5.32%
dividend yield
$142.81
per share
SPG:NYSE
Ticker

Diversification is probably one of the most important things for investors of any kind. Many people choose to diversify their portfolio with real estate but that comes with a lot of specific issues. An interesting alternative is Real Estate Investment Trusts (REIT), which can help alleviate the disadvantages of investing in physical real estate and provide a high yield (often payable monthly).

Keys points about REITs

  • They offer a higher yield than most of the dividend stocks
  • Their prices fluctuate differently than stocks
  • They have to pay 90 % of their income via dividends
  • Their income comes mostly from passive rent leases

REITs Pitfalls

  • There is usually not very great price growth
  • As Interest rates rise some REITs can lose value (it also works oppositely)
  • Everything that affects rents is a risk factor: Trends, moving into big cities, a slower economy

What to focus on when comes to REITs

  • Management of the company
  • Portfolio of real estate assets
  • Dividend history
  • Debt level
  • Volatility (lower the better)

We would not recommend creating a solely REIT portfolio or use these funds as the only means of investing, but REITs can be used as a great tool for diversification and an easy start to real estate investing for people who don’t want to or cannot buy physical real-estate.

You can also add (multiple) REITs to our dividend calculator! You weighted average dividend yield and estimated returns. We created a list of all public tradeable REITs where you can explore more than 200 Real Estate Investment Trusts listed on NYSE and NASDAQ.

Some of the bigger and popular REITs are:

Simon is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG).

Welltower Inc
2.60%
dividend yield
$93.70
per share
WELL:NYSE
Ticker

Diversification is probably one of the most important things for investors of any kind. Many people choose to diversify their portfolio with real estate but that comes with a lot of specific issues. An interesting alternative is Real Estate Investment Trusts (REIT), which can help alleviate the disadvantages of investing in physical real estate and provide a high yield (often payable monthly).

Keys points about REITs

  • They offer a higher yield than most of the dividend stocks
  • Their prices fluctuate differently than stocks
  • They have to pay 90 % of their income via dividends
  • Their income comes mostly from passive rent leases

REITs Pitfalls

  • There is usually not very great price growth
  • As Interest rates rise some REITs can lose value (it also works oppositely)
  • Everything that affects rents is a risk factor: Trends, moving into big cities, a slower economy

What to focus on when comes to REITs

  • Management of the company
  • Portfolio of real estate assets
  • Dividend history
  • Debt level
  • Volatility (lower the better)

We would not recommend creating a solely REIT portfolio or use these funds as the only means of investing, but REITs can be used as a great tool for diversification and an easy start to real estate investing for people who don’t want to or cannot buy physical real-estate.

You can also add (multiple) REITs to our dividend calculator! You weighted average dividend yield and estimated returns. We created a list of all public tradeable REITs where you can explore more than 200 Real Estate Investment Trusts listed on NYSE and NASDAQ.

Some of the bigger and popular REITs are:

Welltower Inc. is an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower?, a real estate investment trust (REIT), owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties.

Equity Residential
4.12%
dividend yield
$64.61
per share
EQR:NYSE
Ticker

Diversification is probably one of the most important things for investors of any kind. Many people choose to diversify their portfolio with real estate but that comes with a lot of specific issues. An interesting alternative is Real Estate Investment Trusts (REIT), which can help alleviate the disadvantages of investing in physical real estate and provide a high yield (often payable monthly).

Keys points about REITs

  • They offer a higher yield than most of the dividend stocks
  • Their prices fluctuate differently than stocks
  • They have to pay 90 % of their income via dividends
  • Their income comes mostly from passive rent leases

REITs Pitfalls

  • There is usually not very great price growth
  • As Interest rates rise some REITs can lose value (it also works oppositely)
  • Everything that affects rents is a risk factor: Trends, moving into big cities, a slower economy

What to focus on when comes to REITs

  • Management of the company
  • Portfolio of real estate assets
  • Dividend history
  • Debt level
  • Volatility (lower the better)

We would not recommend creating a solely REIT portfolio or use these funds as the only means of investing, but REITs can be used as a great tool for diversification and an easy start to real estate investing for people who don’t want to or cannot buy physical real-estate.

You can also add (multiple) REITs to our dividend calculator! You weighted average dividend yield and estimated returns. We created a list of all public tradeable REITs where you can explore more than 200 Real Estate Investment Trusts listed on NYSE and NASDAQ.

Some of the bigger and popular REITs are:

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract high quality long-term renters.

Realty Income Corp
5.72%
dividend yield
$53.67
per share
O:NYSE
Ticker

Diversification is probably one of the most important things for investors of any kind. Many people choose to diversify their portfolio with real estate but that comes with a lot of specific issues. An interesting alternative is Real Estate Investment Trusts (REIT), which can help alleviate the disadvantages of investing in physical real estate and provide a high yield (often payable monthly).

Keys points about REITs

  • They offer a higher yield than most of the dividend stocks
  • Their prices fluctuate differently than stocks
  • They have to pay 90 % of their income via dividends
  • Their income comes mostly from passive rent leases

REITs Pitfalls

  • There is usually not very great price growth
  • As Interest rates rise some REITs can lose value (it also works oppositely)
  • Everything that affects rents is a risk factor: Trends, moving into big cities, a slower economy

What to focus on when comes to REITs

  • Management of the company
  • Portfolio of real estate assets
  • Dividend history
  • Debt level
  • Volatility (lower the better)

We would not recommend creating a solely REIT portfolio or use these funds as the only means of investing, but REITs can be used as a great tool for diversification and an easy start to real estate investing for people who don’t want to or cannot buy physical real-estate.

You can also add (multiple) REITs to our dividend calculator! You weighted average dividend yield and estimated returns. We created a list of all public tradeable REITs where you can explore more than 200 Real Estate Investment Trusts listed on NYSE and NASDAQ.

Some of the bigger and popular REITs are:

Realty Income, The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with our commercial clients.

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