Real estate investment trusts come in a variety of sizes and forms. I am currently invested in several companies in this group. If federal interest rates are low, REITs can often make a lot of money on spreads between low government rates and the interest they can charge the general public. The dividends from REIT companies can be anywhere from single-digit percentages to double-digit annual dividend income.
I have listed some of my favorite REITs in a table below. The dividend amounts will vary, and you will need to check current conditions before you invest in any of these companies. Typically, REIT companies will pay higher dividends than companies in other sectors, but they can easily fall in price also, especially in a rising interest environment. So, you always need to be thinking about protecting your capital with these companies.
Stock | Company |
AGNC | American Capital Agency |
ARR | Armour Residential |
O | Realty Income |
TWO | Two Harbors Investment |
RSO | Resource Capital |
IRET | Investors Real Estate |