Real estate investment trusts (REITs) are a special type of corporation that do not have to pay U.S. federal income tax if they pay out at least 90% of their net income in the form of dividends to their shareholders. REITs enable small investors to participate in income producing real estate investments.
Like MLPs, REITs are required by regulation to pay their income directly to their shareholders. And like MLPs, REITs are able to pay much bigger dividends than other dividend paying stocks because they pay no tax.
Due to their favorable tax treatment REITs are ideal for the small investor. There are dozens of REITs that have been delivering dependable returns to investors for many years.
Learn how a portfolio of REITs produced an average return of 817% versus 9% for S&P 500 Index over the past ten years.
Chuck, I love all your videos. You’re an incredibly talented investor. Why did you stop?