Earn 5-10% yields from real estate without being a landlord. These REITs pay monthly or quarterly dividends from rental income.
REIT = Real Estate Investment Trust. Think of it as a mutual fund that owns buildings instead of stocks. REITs collect rent from tenants and must pay out 90% of profits as dividends by law. This creates high, consistent yields.
No Landlord Hassles
Professional managers handle tenants, repairs, leases
High Dividends
90% payout requirement = 5-10% yields typical
Diversification
Own pieces of 100+ properties with one stock
Retail REIT | "The Monthly Dividend Company"
Properties
12,400+
Tenants
1,400+
Occupancy
99.0%
Div Frequency
Monthly
The gold standard of REITs. Owns retail properties leased to drugstores, dollar stores, convenience stores, and grocery stores. 29 years of consecutive dividend increases. Pays monthly. S&P 500 member. Most reliable REIT for income investors.
Industrial REIT | E-commerce warehouses
Properties
550+ warehouses
Square Feet
110M+
Occupancy
98.2%
Div Frequency
Monthly
Benefiting massively from e-commerce boom. Owns warehouses that Amazon, FedEx, and others need for distribution. High occupancy, strong tenant demand, monthly dividends. One of the best-positioned REITs for the next decade.
Net Lease REIT | Diversified commercial
Properties
1,400+
Lease Length
11 years avg
Occupancy
98.8%
Div History
27 years
Diversified net lease REIT. Tenants pay property taxes, insurance, and maintenance ("net lease"). WPC collects rent with minimal expenses. 27 years of consecutive increases. Quarterly dividends but very reliable. Global portfolio across U.S. and Europe.
Healthcare REIT | Hospitals and medical facilities
Properties
440+ facilities
Type
Hospitals
Countries
9
Risk
Moderate
Extremely high 10% yield attracts income seekers. Owns hospitals leased to operators. Had tenant issues in 2023 (some hospital operators struggled post-COVID) but recovering. High risk/high reward. Aging population = long-term tailwind for healthcare real estate.
Proceed with caution
10% yield signals higher risk. Dividend cut possible if tenant issues worsen. Only for experienced investors comfortable with volatility.
Self-storage REIT | Storage units nationwide
Properties
1,100+ facilities
Units
750,000+
Occupancy
92.5%
Div Frequency
Quarterly
Self-storage is recession-resistant (people need storage during moves, downsizing). NSA operates under various local brands. High margins, low capital expenditures, sticky customers. 5.9% yield with room for dividend growth. Solid business model.
| REIT | Type | Yield | Payment |
|---|---|---|---|
| Realty Income (O) | Retail | 5.2% | Monthly |
| STAG Industrial (STAG) | Industrial | 4.3% | Monthly |
| W. P. Carey (WPC) | Net Lease | 5.8% | Quarterly |
| Medical Properties (MPW) | Healthcare | 10.2% | Quarterly |
| National Storage (NSA) | Self-Storage | 5.9% | Quarterly |
| VICI Properties (VICI) | Gaming/Casino | 5.4% | Quarterly |
| Iron Mountain (IRM) | Data Centers | 3.9% | Quarterly |
| AGNC Investment (AGNC) | Mortgage | 13.8% | Monthly |
| EPR Properties (EPR) | Experiential | 7.1% | Monthly |
| LTC Properties (LTC) | Senior Housing | 7.8% | Monthly |
30+ pages covering REIT types, tax treatment, portfolio allocation, and top picks
Own shopping centers, strip malls, drugstores, grocery-anchored properties.
Examples: Realty Income, Agree Realty
Pros: Stable tenants, monthly income, proven track records
Cons: E-commerce competition for some retail
Warehouses, distribution centers, logistics facilities.
Examples: STAG, Prologis
Pros: E-commerce tailwind, high demand, rent growth
Cons: Valuations high after recent run-up
Hospitals, medical offices, senior housing, skilled nursing.
Examples: Welltower, Ventas
Pros: Aging population, long-term demand
Cons: Operator risk, regulatory changes
Don't own properties—own mortgages and mortgage-backed securities.
Examples: AGNC, NLY
Pros: Very high yields (10-15%)
Cons: Frequent dividend cuts, interest rate sensitive
Unlike most stocks, REIT dividends are taxed as ordinary income (10-37% federal tax rate), not qualified dividends (0-20% rate). This makes REITs less tax-efficient in taxable accounts.
✓ Best Account: Roth IRA
Put REITs in Roth IRA where dividends grow 100% tax-free forever. Maximize the benefit of high yields.
✗ Avoid: Taxable Accounts
In a taxable account, you'll pay your full tax rate on REIT dividends every year. Use for qualified dividend stocks instead.
Diversified across property types | 5.6% weighted average yield
Realty Income (O)
Retail | Monthly | Very safe
$15,000
30% | 5.2% yield
STAG Industrial (STAG)
Warehouses | Monthly | Growth
$12,500
25% | 4.3% yield
W. P. Carey (WPC)
Net lease | Quarterly | Stable
$10,000
20% | 5.8% yield
National Storage (NSA)
Self-storage | Quarterly
$7,500
15% | 5.9% yield
VICI Properties (VICI)
Gaming/Casino | Quarterly
$5,000
10% | 5.4% yield
Portfolio Statistics:
Total Invested
$50,000
Annual Income
$2,795
Avg Yield
5.6%
60% monthly payers for consistent cash flow. Diversified across 5 property types.
Quality REITs like Realty Income and STAG are quite safe for retirement income. They have recession-tested business models and long dividend histories. However, avoid mortgage REITs and stick with property-owning REITs. Diversify across 5-10 REITs, not just one.
By law, REITs must distribute 90% of taxable income as dividends. This leaves little cash for growth, pushing yields higher. It's not necessarily a warning sign—it's built into the REIT structure. Compare to 2-3% yields from corporations that reinvest more.
Both work. REIT ETFs (like VNQ or SCHH) give instant diversification but include lower-quality REITs. Individual REITs let you cherry-pick the best but require more research. A hybrid approach works: 50-60% in top individual REITs + 40-50% in a REIT ETF for diversification.
Yes, but slower. Quality REITs grow dividends 3-5% annually (vs 8-12% for dividend growth stocks). Realty Income has increased dividends for 29 consecutive years. Focus on REITs with 10+ year histories of increases for dividend growth potential.