For investors of Real Estate Investment Trusts, the appeal of the investment is usually pretty closely tied to the typically large dividends these companies pay out. But to focus on the dividend first is akin to putting the cart before the horse.
Before a REIT can pay a dividend, it must first create income. In the video below, Motley Fool contributor Jay Jenkins dives into the income engine of one such REIT, Resource Capital Corporation (NYSE:XAN), and discovers that in this case, this REIT is more of a lender than a direct investor in real estate.
Fool contributor Jay Jenkins has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.