REITs
are not all that different than other small cap stocks and bonds. They
give investors a good return on the money that they invest, in fact the
market capitalization once averaged out comes to about $340 million on the
Wilshire Real Estate
Securities Index. This is no small feat
and as an investor you can do well with an investment strategy that
includes REITs.
There are some factors that make
REITs more advantageous to investors when compared to stocks and bonds.
For example the amount of money that you will make in dividends can be
much greater with REITs. In fact the dividends on the average REIT is six
times higher than that on the Russell 2000 index. And unlike some other
stocks every single REIT will pay you dividends. This means a guaranteed
income throughout the year.
If you are wondering how to tell
what the performance of a REIT is you will have to calculate the value of
all of its real estate holdings and assets. REITs are popular because the
correlation between the value of the REIT and other financial assets.
Another positive aspect of REITs is that they are not a volatile
investment. They are relatively stable and they do offer some inflation
protection to investors.
When you invest in REITs you will be
able to make a pretty steady income and to make this money you will not
even have to have a minimum income. REITs are watched very carefully by
several different sources and this tends to keep them a pretty safe
investment. With all of the analysts, auditors and other businesses
watching them they tend to stay on the level.
