Understanding REITs and Their Appeal

Real Estate Investment Trusts, or REITs, are companies that own, operate, or finance income-producing real estate. They’re structured to pass the majority of their taxable income to shareholders as dividends, making them a popular choice for investors seeking passive income. Unlike directly investing in property, REITs offer diversification and liquidity, meaning you can buy and sell shares easily on the stock market. The appeal is simple: regular dividend payouts with the potential for capital appreciation.

What Makes a REIT “High-Yield”?

A high-yield REIT is characterized by its above-average dividend yield compared to the broader market