In one of my previous post I stated the REIT’s that I thought would be worth following. In case you missed it REIT’s; ;”Definition of ‘Real Estate Investment Trust – REIT’ A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate.
Equity REITs: Equity REITs invest in and own properties (thus responsible for the equity or value of their real estate assets). Their revenues come principally from their properties’ rents.
Mortgage REITs: Mortgage REITs deal in investment and ownership of property mortgages. These REITs loan money for mortgages to owners of real estate, or purchase existing mortgages or mortgage-backed securities. Their revenues are generated primarily by the interest that they earn on the mortgage loans.
Hybrid REITs: Hybrid REITs combine the investment strategies of equity REITs and mortgage REITs by investing in both properties and mortgages.” Here are some more good REIT’s options you have.
- INVESCO GLOBAL REAL EST INC FUND CL (A)
What I love : Rated four stars by Morningstar and currently paying a dividend of 0.23. The dividends are paid quarterly.
- FR TR S&P REIT INDEX FUND
What I love: dividend of $0.10. Rated three stars by Morningstar and currently trading at $18.70.
- ISHARES FTSE NAREIT RE ET 50
What I love:dividend of $0.36. Rated three stars by Morningstar and currently trading at $41.73.
Out of the three options the riskiest is FRI because of its low rating by morning star and low dividend. The best option in my opinion is ASRAX.All three REIT’s carry risk of losing value so if you are to invest do so with a lot of information and don’t dive into it approach carefully.