REITs

How Much Do REITs Pay?

To put things in perspective, the S&P 500’s average dividend yield is 1.9 percent. In comparison, the average equity REIT (which owns real estate) pays around 5%. The average mortgage REIT (which owns mortgage-backed securities and related assets) pays a yield of roughly 10.6%. Can you make good money with REITs? REITs may be a

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How Safe Are REITs?

The biggest threat to REITs is a rise in interest rates, which reduces REIT demand. In a rising-rate environment, investors tend to gravitate toward safer income investments like US Treasuries. Treasury bonds are government-backed and pay a set rate of interest. As a result, when interest rates rise, REITs sell off, while the bond market

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