VNQ - 3 High-Yield REITs to Buy Hand Over Fist in July
2024-07-05 04:21:00 ET
The average real estate investment trust (REIT), using Vanguard Real Estate Index ETF (NYSEMKT: VNQ) as a proxy, is yielding roughly 4.1%. That's much higher than the market, with the S&P 500 index's yield at a measly 1.3%. But you can still do better than 4.1% without too much trouble, and you don't have to take on huge risks. Here are three high-yield REITs you'll want to get to know in July.
All three companies on this list are net lease REITs , which means that they buy single-tenant properties and have leases that require tenants to pay most property-level operating costs. While any single property is high risk because there's only one tenant, across a large enough portfolio the lease structure ensures that risk is very low. When it comes to net lease REITs, Realty Income (NYSE: O) is the 800-pound gorilla, and by a wide margin (its market cap is well more than three times the size of its next closest peer).
Image source: Getty Images.
For further details see:
3 High-Yield REITs to Buy Hand Over Fist in July