For older people searching for good safe yields, it is hard to beat certain REIT’s. Many even pay dividends monthly for income investors, great for using DRIP.
Real estate investment trusts (REIT’s) own and usually operate income producing real estate. This isn’t just commercial and residential real estate. There are REIT’s that specialize in healthcare and data centers. Ratios you want to consider especially with REIT’s are Debt/Equity ratio and Payout ratio (% of earnings paid out as dividends). Payout ratios of over 100% mean the company is paying out more in dividends than it’s earnings. The main point to get out of this post is to know that, for the coming years, it would be smart to avoid just about all the mall and retail REIT’s, as Amazon is increasingly winning the fight for shoppers income. Healthcare, Office and Data Centers are definitely here to stay, compared to the mall/retail REIT’s.
Disclaimer: I own shares in NWH.UN. You are taking a risk buying stocks no matter how informed you feel that you are. I am not responsible for your decisions.