The best high yield REIT to invest $2,000 in right now
The average real estate investment trust (REIT) today offers a dividend yield of approximately 3.8%. That’s well beyond it. S&P 5001.2%
But you can still do better. Real estate bell Realty income (NYSE:O) It yields 6.1 percent. Here’s what you need to know about why it’s a good time to put $2,000 or more to work in this high-yielding REIT.
Realty income is net of leases. Real estate investment trust. That means the tenants are responsible for paying most of the property’s operating costs. Although almost all of the properties are single-tenant — meaning there’s a high risk if the tenant leaves — over a larger portfolio, the risk is much lower. The REIT is the largest player in net lease space with over 15,400 properties.
Outside of realty income, however, there is little to differentiate when looking at individual metrics. example – WP CareyThe second largest net lease REIT, offers Dividends from 6.5%
Meanwhile, realty income growth in leisure has averaged around 4.3% per year, but outpaced the Realty agreed It has increased its dividend by roughly 6% over the past decade. As for the dividend, Realty’s earnings are back on track for 30 consecutive annual increases. NNN REIT35 years.
Even the overall approach to realty income is not unique to the portfolio. It has large “other” category assets in the retail and industrial sectors. And it invests both domestically and in Europe. That’s what WP Carey does.
At the end of the day, you can find better net lease REITs than realty income by any measure you want. What sets it apart is its size (at a market cap of $45 billion, more than four times that of its next closest peer) and the fact that it scores well on various industry metrics, even if it doesn’t. A REIT with the highest performance on a specific metric.
Realty income is, ultimately, a basic investment. It’s a reliable company that tends to do fairly well year in and year out. You won’t flaunt it at a cocktail party, but you’ll be happy to have it in your portfolio, sending you attractive profit checks month in and month out.
You can reinvest those dividends to increase your growth. Or you can use that money to pay for living expenses, because monthly dividends are as close to a paycheck replacement as you can get.
There’s just one more: a size issue in the net lease sector. A net lease is usually a cash transfer to the seller, which is usually an operating business such as a retailer or manufacturer.
