REITs, or real estate investment trusts, are special companies with a tax designation that results in big-time dividends to shareholders. By law, REIT stocks have to deliver 90% of taxable income back to shareholders, meaning a mandate for big dividend yields.
Charles Sizemore, editor of the Sizemore Investment Letter, says the combination of both big dividends and the strong outlook in particular segments of the REIT sector means its time to start looking around for stocks to buy.
Some particular slices of the REIT stock space that Charles likes include:
- Asian REIT stocks, if your broker will let you buy them and you’re comfortable with OTC stocks. Picks include The Link REIT (LKREF), CapitaCommercial Trust (CMIAF) and Stockland (STKAF).
- British REIT stocks including Land Securities (LSGOF), British Land (BTLCY) and Hammerson PLC (HMSNF).
- Triple net REIT stocks including Realty Income (O) and National Retail Properties (NNN).
- Healthcare REIT stocks including Senior Housing Properties Trust (SNH) and the aptly named Health Care REIT (HCN).
Related REIT Reading:
- Get more details on Charles’ British REIT picks and details on Charles’ Asia REIT picks here. (InvestorPlace.com)
- Learn more about Charles and his investing strategy. (Sizemore Investment Letter)
- Wall Street icon Jeff Gundlach likes mortgage REITs now. (Barron’s)
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at email@example.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.