If You're Retired, Consider Buying These 2 Stocks
Moving from the workforce to retirement is a financial and emotional transition that generally requires a shift from building a nest egg to living off of it. If you're looking to start generating dividend income, you should definitely take a look at W.P. Carey (NYSE: WPC) and Broadmark Realty Capital (NYSE: BRMK), two real estate investment trusts (REITs) that offer a high yield and lower-than-usual risk. Here's a quick look at each.
W.P. Carey was one of the first companies to build a net-lease business. Essentially, it buys single-tenant properties from companies that still want to use the assets they are selling. These clients are happy to take the REIT's cash, which they use for things like debt reduction and growth spending, and sign long-term leases with built-in annual rent hikes. W.P. Carey's average lease length is currently around 10.5 years. Making this deal even sweeter for the REIT, the new tenant is generally responsible for most of the operating costs of the property. It's a fairly low-risk and consistent business model.
Image source: Getty Images.
Source Fool.com