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With interest rates likely to remain low for the foreseeable future, savvy investors are looking for alternative income sources. That's where one of the best REITs to buy in 2020 comes into play.
On Dec. 11, 2019, the Federal Open Market Committee ended the year with a policy pause after three interest rate cuts.
The FOMC elected to keep the federal funds target range between 1.5% and 1.75%, pointing to the sustained expansion of economic activity, inflation near the target 2% objective, and a strong labor market.
This is excellent news as the markets continue with the longest economic expansion in U.S. history. Still, investors that rely on higher rates for things like bond yields will need to look elsewhere for reliable income sources.
Anyone tied to a fixed income is going to be in a bind if the yield on their 10-year bond suddenly drops to less than 2%. It's simply not a sustainable income model.
A better choice is a real estate investment trust (REIT).
The best REITs are alternative investments that deliver significant and steady income. This is thanks to their income from leases, share price appreciation from a strong real estate market, and favorable tax treatment for owners.
And the best REIT to buy today has been expanding at an impressive clip.
In fact, this is one of the largest publicly traded REITs in the United States, which operates in some of the country's highest-growth markets.
Plus, this pick for one of the top REITs to buy now pays a 5% yield and has a potential 50% upside over the next 12 months.