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Originally Posted by Rain Man
He might have been saying "REIT" - Real Estate Investment Trust. I've heard it pronounced at "reet".
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Yes, it's pronounced "REET". My old law firm represented several REITs. It stands for "Real Estate Investment Trust". By law it's REQUIRED to spit out 90% of its taxable income as dividends.
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They tend to pay good dividends that can sometimes approach 9 percent, but they're a stock so the actual stock price can fluctuate. The return isn't guaranteed.
I kind of like REITs as a relatively stable return with a high floor and low ceiling. When I'm retired, I'll probably put more of my money into them.
If there's something with a guaranteed 9 percent return out there, I'd put 100 percent of my money into it. Such a thing doesn't exist, at least not in theory.
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There's nothing with a guaranteed 9% return, no question about that.
I've bought into one REIT. MPT, which is "Medical Properties Trust". I have indirect knowledge of their management, and have high hopes that the medical community can pay their rent regularly and won't default as often as, perhaps, other types of businesses. It's done well for me, spitting out the dividends and it's up 37% since I bought it in July 2017.
There are many others out there. They tend to focus, as MPT does, on a TYPE of real estate. If you have malls near you, it's likely one or more is owned by Simon Property Group -- which is a REIT that focuses on retail shopping centers.