What are REITs?

If you are new to investing you might have heard people talking about them.

Here are some tips and things to look for when analyzing your next:

Real Estate Investment Trust

🏨 - Thread - 🏨
1/

As a dividend investor I like to look at dividend yield.

Generally REITs pay a higher yield than the average S&P 500 stock.

Another bonus for REIT dividends is some of these companies pay out monthly vs. quarterly.

$STAG
$O

Are two that come to mind which pay out monthly
2/

What holdings does the REIT you choose to invest have in their investment portfolio?

What kind of properties do they have?

👉 Apartment Buildings
👉 Office Buildings
👉 Resorts
👉 Health Care Facilities
👉 Storage Units
👉 Farmland

There is a diverse variety of options
3/

Within their holdings do you see long term sustainability?

Will people continue to rent apartments?

Will office spaces be as important in 20 years?

How will resorts look in the years to come?

Are people storing things?

Ask yourself these type questions when investing.
4/

What are the geographic locations within the REIT holdings?

If you are looking to get in a specific market then work to find a company that is located in a small area.

If you want to be apart of a company who owns buildings all across the country put that as your focus.
5/

Diversification is relatively easy when it comes to REITs

There are so many companies who have different types of holdings

Here would be an example:

$PSA - Storage
$EQIX - Data Centers
$AMT - Broadcast Towers
$LAND - Farmland
$SPG - Shopping Dining Entertainment
6/

As with any investment it's imperative you agree with the Management of whatever REIT you invest.

Is there a long term reputation of success and dividend payout?

Does the leader of the company share your vision for the company direction?

Ask yourself these questions.
7/

I personally keep about 20% of my portfolio in REIT.

Real Estate is extremely interesting and a fantastic wealth builder.

With numerous options on where you can put your money there is something for everyone.

(This is not financial advice)

Hope you enjoyed the REIT talk!
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