Want to Insulate Your Investments? Check Out These 3 REITs.
The market is in an uncertain place today, with the S&P 500 index now officially in a bear market. In times like this, it can help to have a few good dividend-paying stocks in your portfolio. That way, you can focus on the income you generate instead of the volatility of the market.
If that sounds like a plan, you'll want to insulate your portfolio with dividend-paying real estate investment trusts (REITs) like Realty Income (NYSE: O), W.P. Carey (NYSE: WPC), and National Retail Properties (NYSE: NNN). Here's why.
All three of these REITs hail from the net lease sector. A net lease is a specific rental agreement in which the lessee of a single property agrees to pay for most of the property's operating costs. Although any given property is high risk, since there's just one tenant, over a large portfolio the risk is pretty minimal. It is a vast oversimplification, but landlords like Realty Income, W.P. Carey, and National Retail Properties basically just have to collect rent.
Source Fool.com
