4 Bargain REITs With 5.0% Yields and Big Upside

Real estate investment trusts (REITs) just don’t get the respect they deserve. And that’s too bad, because owning just a handful can make a huge difference in your investment returns. I’ll reveal four of my favorite REIT buys now in just a moment. First, let me explain why I’m pounding the table on the sector today. The main reason: REITs often pay dividend yields far above your average S&P 500 stock. What’s more, they’re obligated to pay out 90% of their taxable income as dividends, which forces management to take a disciplined approach to growth. In addition, REITs give you a very liquid way to invest in physical assets; your shares represent a part of the actual buildings the trust owns. And many REITs are very diversified—we’re talking ownership of hundreds, even thousands, of buildings across many states. ... Read more