Real Estate Investment Trusts (REITs) are a great way for investors to diversify their portfolios and to receive dividend income. Because of their lower correlation to the broader stock market, wealth managers have utilized REITs to dampen volatility in client portfolios for many years.
What are Real Estate Investment Trusts (REITs)?
Real Estate Investment Trusts (REITs) are companies that own, operate, and/or finance real estate properties that are income-generating. REITs accomplish this by using the pooled capital of investors (a minimum of 100 investors or shareholders by the end of the first taxable year).