Real Estate Investment Trusts offer stock-market accessible real estate income with dividend yields of 5-8% — significantly higher than the S&P 500's 1.3% yield.
Top REITs by Category
- Realty Income (O): 5.4% yield, monthly dividend, 30-year streak
- VICI Properties (VICI): 5.8% yield, casino/entertainment
- Agree Realty (ADC): 5.1% yield, net lease retail
- Digital Realty (DLR): 3.8% yield, data centers (AI beneficiary)
- American Tower (AMT): 3.5% yield, cell towers
REITs must distribute 90% of taxable income as dividends, making them ideal for income investors. Hold in tax-advantaged accounts (IRA/401k) since REIT dividends are taxed as ordinary income.
