The Smartest Dividend Stocks to Buy With $500 Right Now
As interest rates started to rise two years ago, investors soured on the real estate investment trust (REIT) sector. That isn't shocking, since REITs make use of debt to buy property. But the short-term pain of higher interest costs won't derail the long-term opportunity in the REIT sector, since property markets have historically adjusted to interest rate changes.
If you are looking for income today, you'll want to look at REITs Agree Realty (NYSE: ADC), Realty Income (NYSE: O), and NNN REIT (NYSE: NNN). Here's why.
The factor that links Agree Realty, Realty Income, and NNN REIT is the net lease approach. A net lease requires the tenant to pay most property-level operating costs, including things like maintenance and taxes. This allows the tenant to control what is a vital property for them and frees up the REIT to focus on growing its portfolio. With a large enough portfolio, meanwhile, net leases are a pretty low-risk way to invest in real estate.
Source Fool.com
