A REIT, or real estate investment trust, is a company that owns, operates or finances real estate. Investing in a REIT is an easy way for you to add real estate to your portfolio, providing diversification and access to historically high REIT dividend payments. “Especially now, with historically low interest rates.”As of January 2020, REIT dividends have paid 3.93% on average, according to data analyzed by NYU’s Stern School of Business, though specific REIT sectors may offer higher dividend payments. Over the last 40 years, the all-equity REIT index has returned 11.28%, according to Nareit, a REIT representative body. Buying a REIT ETF or mutual fund may provide more liquidity than buying traditional REIT shares.

Source: Forbes September 09, 2020 22:41 UTC