Please enable JavaScript to view the comments powered by Disqus.
Advertisement
Slide Show

1 of 14

A Dozen Great REITs for Income AND Diversification

Getty Images

Advertisement

One of the essential first lessons that investors learn is diversifying a portfolio reduces risk. That’s because different assets often react differently to the same event. A downturn in one asset when interest rates rise, for example, may be counter-balanced by an upswing in another. By holding diverse assets, a portfolio becomes less sensitive to market swings.

Diversification is recommended not only across asset classes, but across geographies. This is especially true for real estate, since the value of a property is largely determined by the local economy. A real estate investment trust (REIT) that performs poorly in the U.S. may generate good overall results from the performance of its European and Asian assets.

Advertisement

Investors could be taking on unnecessary risk by limiting their holdings to US-centric REITs. Many large U.S. REITs recognize this threat and are diversifying their holdings across geographies. Global expansion not only trims geographic risk, but benefits overall performance by giving these REITs a foothold in faster-growing economies of Asia and Latin America, where an expanding middle class is fueling the creation of wealth.

Here are 12 mega-sized REITs – many with rising dividends – that also offer diverse international exposure and generous yields. We’ve also included an extra real-estate play that’s not organized as a REIT but is worthy nonetheless.

SEE ALSO: 57 Dividend Stocks You Can Count On in 2019

Data is as of Feb. 15. Dividend yields are calculated by annualizing the most recent quarterly payout and dividing by the share price.

Advertisement

View as One Page

Advertisement
Sponsored Financial Content