Any investor who looks to generate income from their portfolio has no doubt taking a look at real estate investment trusts, or REITs.
A REIT is a company that manages and operates a portfolio of
different properties. These properties could include apartment buildings,
office complexes, commercial properties, hospitals, shopping malls or hotels,
although individual REITs tend to specialize in one specific type of property.
REITs hold great appeal because they must pay out at least 90% of their income
in the form of dividends to their shareholders, resulting in some REITs
offering yields of 10% or more.
For investors looking to generate monthly income, things get
a little trickier. Most of them distribute dividends on a quarterly basis. There
are a few that pay monthly dividends, and even fewer still that are worth
owning. Monthly payers provide a greater deal of flexibility, especially those
that use portfolio income to pay their bills, so these deserve special
consideration when crafting a larger portfolio.
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