Everything you need to know about REITs
Our most in-depth report tomorrow
Tomorrow at 9:00 am ET, Market Sentiment will publish its most in-depth report ever.
First, take a look at the below chart — It’s the monthly dividend payout history of Realty Income. The company has consistently increased its dividend more than 100 times since its listing in 1994.
Think about that for a minute: The company was able to sustainably increase its dividends through the dot-com bubble, Global Financial Crisis, and the Covid ’19 pandemic.
If you are wondering how, the company is structured as a Real Estate Investment Trust (REIT). REITs are companies that invest and operate real estate and are required to distribute at least 90% of their earnings to their shareholders every year.
Since REITs invest in real estate, they tend to generate predictable, lease-based revenue. A company can easily put off buying new equipment or R&D investments when the times are tough, but if you have a 20-year lease on a commercial building, you’re contractually obligated to pay your landlord regardless of economic conditions.
This revenue stability is reflected in the long-term performance as well — REITs have managed to beat the S&P 500 over both a 20-year and a 50-year period.
Given this performance, it’s surprising how little coverage REITs get compared to traditional investment products like stocks and bonds. The cherry on top is that REITs have a low correlation with the market and perform well during market downturns.
Given all this, we have prepared one of our most in-depth reports on REITs and whether you should consider adding them to your portfolio. Here is a sneak peek into the report.
The report will be only available to paid subscribers, who receive four in-depth analyses every month (along with additional investor interviews) and get to be part of our exclusive Slack community.
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