REIT stands for real estate investment trust. They've been around for 60 years, created by Congress so that investors of all sizes could get involved in owning real estate at an entry price as low as a single share.
REITs own and operate real estate properties of pretty much every kind, and they all have to follow one basic rule: They must pay at least 90% of their taxable income to shareholders in the form of dividends. Combine that with their liquidity compared to owning a piece of real estate directly, and REITs are ideal for passive income investment and retirement portfolios.
Here are 14 basics to understand and look for in this investment type.
5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.