Summary

  • REITs benefit from U.S. economic growth and thus are not as interest rate sensitive as most bonds and preferred stocks.
  • Bonds and preferred stocks, unlike REITs, have no potential for dividend income growth, but preferreds, in particular, offer higher current dividend yields, and bonds promise the repayment of the principal amount at maturity.
  • Higher-yielding equities, such as utility stocks and MLPs, compete with REITs for the investment dollars of yield-oriented investors, but only REITs provide for the indirect ownership of commercial real estate.
  • Direct real estate ownership may sometimes deliver higher profits than investing in a REIT, but most individuals don't have the time or experience to be in the real estate business full ...

Get Investing in REITs: Real Estate Investment Trusts, 4th Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial