Real estate investment trusts (REITs) are a more reliable source of
income than many comparable high yielding stocks in volatile sectors
like energy. That’s because REITs are legally required to hand over the
bulk of their income to investors. This unique structure, which is the
result of legislature from the 1960s, makes REITs an attractive addition
to an income-producing portfolio.
The five biggest REITs pay an average yield of nearly 3%. These
dividends are secure, and growing thanks to expanded operations and
improving profitability. Some of them have lost favor in recent months,
and although they have recovered a bit from recent 52-week lows, they
still remain affordable buys today.
These five are Simon Property Group (SPG), Public Storage (PSA), American Tower Corporation (AMT), Crown Castle International (CCI), and Equity Residential (EQR).
Let's look more closely at these five REITs...
Source: Contrarian Outlook