Real estate investment trusts (REITs) and their typically high dividend yields are a key part of a payout-powered retirement portfolio that’s built to dish out higher and higher dividends every single year.
The five REITs we’ll discuss today will pay you 4% to 7.3% per year in dividends alone. And this income stream will only grow as time passes, because these firms have growing cash flow streams they must pass on to shareholders in order to keep their privileged REIT status.
REITs may not get much mainstream coverage, but the academics are starting to catch on to these dividend machines. Last year, I pointed you to a study from Wilshire Research that showed “dramatic” results when REITs were added to a retirement portfolio.
Let’s also consider recent research from global benchmarking company CEM Benchmarking that shows publicly traded real estate has no equal in retirement-focused accounts:
Equity REITs Are the Best of the Best