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On Oct. 30, the Fed slashed rates for the third time this year. Now, if you're looking to save like the days of higher rates, you're out of luck. But it's not all bad news. In fact, the best REIT to buy now is one that will pay an impressive 5% dividend yield.
Following the Fed's FOMC meeting last month, the central bank issued a statement that essentially declared the end of inflation. In short, it said that the public shouldn't expect interest rate hikes anytime soon.
Now that the Fed has created a brand-new policy to get used to, investors will need to change their approach to generating returns.
If the Fed is right and inflation is truly "dead," we may see a correction in the stock market this year. But where will investors make money if this happens?
The answer, without a doubt, is by investing in real estate investment trusts (REITs).
A REIT gives you a twofold benefit – stock appreciation plus yield income.
Pick the right investment, and the stock's share price could outperform the broader market, netting you substantial gains. Further, a REIT with a robust yield will pay steady income to either reinvest or put in the bank.
That income can often double or even triple the bond market going rate at any given time.
It's a mystery why there hasn't been a flood of investment dollars into the REIT sector recently, but something else is telling.
When the Fed issued its latest policy statement, the overall market reacted negatively. At the same time, the top REITs to buy either held steady or increased in value.
If you haven't added any REITs to your portfolio yet, particularly if you are looking for income stocks, you should do it now.
This is a secure stock that will give you income-producing gains in an environment where investors are searching high and low for exactly this.