Article of the Week
"How to Play REITs From Here.."
As you know by my name, I love dividends. And in addition to sharing on here, I write regularly in the investment platform- Seeking Alpha.
My goal there is to teach everyday investors about building wealth so they won’t to need to work to traditional retirement age. I want to help you take control of your life, have F.I.R.E.
And the platform allows writers to share one article once a week free of charge. So, I thought I would share it here with all of you.
It still surprises me how many people are unfamiliar with REITs. When I discovered them years ago, I instantly fell in love with the idea of owning real estate through the stock market. You see your favorite stores likely use buildings owned by REITs, or Real Estate Investment Trusts.
Costco (COST), Walmart (WMT), and Starbucks (SBUX) are a few of the popular names that pay rent to REITs. Real Estate Investment Trusts own everything from hospitals, medical offices, shopping centers, hotels, and casinos. You like to visit Las Vegas? Most of the buildings on the Las Vegas strip happen to be owned by one of my favorite REITs, VICI Properties (VICI).
While consumers shop at these companies and spend their hard earned money, I get paid dividend checks on a consistent basis. That’s why as a dividend investor, people work for you. Without consumers spending their money at these stores, companies like Walmart, Starbucks, and Costco couldn’t generate enough income to pay rent.
And REITs wouldn’t be able to pay out large dividends to its shareholders as a result. REITs are very important for the economy. And while they aren’t as exciting as technology stocks, they are vehicles that pay out reliable streams of income. They were created by Congress for small investors like you & me to own real estate.
So, the question is:
Why aren’t you investing in REITs?
Every time I see Starbucks with a long line of customers, or Costco packed with shoppers, I smile because I know every consumer is contributing to my paycheck. To be successful in investing, you have to change the way you think. For a more in depth perspective on the power of investing in REITS, read here.
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