Real estate investment trusts (REITs) have long been prized by income seekers thanks to their juicy dividends and strong total returns. Thanks to their unique tax structure, REITs are able to pass on much of their income as dividends, pushing yields to the 4% to 6% range on average. Moreover, they’ve democratized commercial real estate investing for the average person.
But lately, those factors have hurt the sector immensely.
Thanks to rising rates, crashing real estate values, and other factors, REITs aren’t looking like the slam dunk they used to be. Some pundits have even questioned whether or not they have any value for portfolios at all.
But valuations are rock-bottom cheap. Could now be the time to go big on the asset class? The clear answer remains a bit murky.
