Co-produced with Beyond Saving
As investors who are primarily focused on income, REITs are among our favorite types of investments. With a tax structure that requires them to pay out the majority of their taxable income to shareholders, REITs frequently have much higher yields than average.
Additionally, equity REITs hold large amounts of real estate. We identified in a previous article how large real estate holdings make eREITs especially resilient to bankruptcies.
REITs live by their cash flow, and a large portion of that cash flow is directly sent to investors through dividends. For a