With interest rates on the rise, alternative investments like Real Estate Investment Trusts, or REITs, are becoming a more attractive option for income investors. When positioned for the long term, REITs can provide steady income and predictable growth. Our latest reaffirmation for Best Real Estate Dividend Stock List checks these important boxes.
In addition to income payments, REITs offer many advantages, including diversification, liquidity, and, depending on local laws, tax benefits. Although REITs aren’t immune to volatility, their performance tends to be positively correlated with interest rates over time. However, this correlation tends to break down when the Federal Reserve embarks on monetary tightening. Income investors are no doubt aware that the central bank is currently pursuing tighter monetary policies to reverse the impact of inflation.
That being said, our REIT pick is well-positioned in the current macro-environment. Unlike other REIT securities, its focus is on single-tenant, freestanding retail buildings and not the volatile shopping mall segment that has struggled in the wake of COVID-19. Its next ex-dividend payment is scheduled for August 2, 2022.
You can check out the Best Real Estate Dividend Stocks List to explore all the stocks.
