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Real estate investment trusts, also known as REITs, offer both quarterly payouts and stock price appreciation potential. In fact, we've got a REIT for you today that delivers both of those things.
The best REIT right now pays more than the average S&P 500 yield, and the value of its shares is going up significantly over the next few months.
REITs fall under a broad category of "alternative investments" with others like hedge funds and private equity. Investors typically enter these spaces as an alternative to stocks.
The Best REIT to Buy for 2020: Our top REIT pick could climb to five times its current price – and these shares yield a solid 7.9%, too. Get the pick now…
Now, a lot of retail investors can't access hedge funds or private equity. Many hedge funds require very high net worth or income to invest. And other alternative investments have stringent regulations and stipulations about accredited investments.
Real estate, however, is booming in many areas, and retail investors can easily access the REIT market. Since interest rates have been cut three times this year, more investors have left stocks and bonds for a higher yield in REITs.
REITs are traditionally a way to offer investors steady and high quarterly payouts. REIT dividends generate income from real estate assets such as apartment buildings, hospitals, offices, and other institutional working real estate.
They can outperform in the stock market. And they also offer unique tax advantages that not every stock (or bond, or cash) does.
Here's the best REIT to watch now, which has done just that.