Part 2/9:
One of the primary attractions of investing in REITs is the legal requirement for these companies to distribute at least 90% of their taxable income back to their investors. This translates to earning dividend payments akin to receiving rent from tenants. When considering REITs, keep the following in mind:
- Type of Real Estate: It’s crucial to understand the type of real estate a REIT invests in. Some segments, like data centers, may be more viable in the age of technology, making them a better choice compared to declining sectors such as traditional office spaces.