Co-produced with Beyond Saving
REITs play a very strong role in our Model Portfolio, by paying higher than average dividends due to tax laws that require minimum distributions at 90% of taxable income and tradition that most REITs pay out more than 100% of their taxable income. This makes them prime candidates for investment as they align well with our Income Method.
REITs are pass-through corporations, meaning that they are exempt from most taxes at the corporate level, as long as the majority of their income is passed through to investors. This allows investors to