Patience can be a virtue. Thanks to the wonders of compound interest, anyone can grow a relatively modest investment into a million-dollar nest egg over time. For example, investing $300 a month into stocks delivering a 10% average annual return would grow into $1 million in about 35 years.
You can potentially become a millionaire faster by either investing more money or making a higher-returning investment. One sector that has historically delivered high returns is real estate. While known more for their ability to produce passive income , real estate investment trusts ( REITs ) have delivered 11.6% total annualized returns over the past 20 years. At that rate, REITs can grow a $300 monthly investment into $1 million in about 31 years. Here are a couple of REITs that could help their investors become millionaires in the decades ahead.
Realty Income (NYSE: O) has done a fantastic job growing value for its shareholders over the years. Since its public listing in 1994, the REIT has delivered a compound average annual total return of 15.1%. As a result, a hypothetical investor who bought $300 of its stock each month would have become a millionaire in 26 years.
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These Passive-Income Stocks Could Very Well Be Millionaire-Makers