Look to REITs for Retirement Income as Inflation Heats Up
by Eleanor Laise, Senior Editor, Kiplinger's Retirement Report
Aug 27, 2018
4 minutes
Bond yields remain low, inflation is ticking up, and stock valuations look lofty. That all sounds like bad news for investors--but those holding real estate investment trusts may stand to benefit.
REITs are companies that own, operate or finance property such as offices, shopping centers and apartment buildings. They're required to distribute at least 90% of their taxable income to shareholders, so they tend to offer generous dividends. That income, combined with potential stock-price appreciation, can help investors outpace inflation. And a dose of real estate can be a diversifier: REITs tend to have low correlations with the broader stock market and with bonds.
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