3 REITs That Could Set You Up for Life
Key Points
W.P. Carey is a diversified dividend powerhouse.
Universal Health Realty Income Trust is a boring tortoise with an incredible dividend record.
VICI is building a leading position in a new property niche that could be a great “bet.”
During your working years, the focus is on building a nest egg. When you hit retirement, however, you need to live off of those savings. Dividends can make that easier to achieve.
These three real estate investment trusts (REITs) have proven they have what it takes to keep paying investors through thick and thin, which could set you up for a lifetime of robust, growing passive income . 1. W.P. Carey: Diversification to the extreme
You know that diversification is good for your portfolio, but it’s also good for a REIT. One of the best examples of this is W.P. Carey ( NYSE:WPC ), which is among the most diversified landlords you can own. Its portfolio spans the industrial (25%), warehouse (24%), office (21%), retail (17%), and self-storage (5%) sectors, with a fairly large “other” grouping rounding out the mix. Image source: Getty Images. It also offers geographic diversification, with roughly 37% of its rents coming from outside the U.S., mostly from Europe. W.P. Carey uses the net lease approach, which means that its tenants are responsible for most of the operating costs of the more than 1,250 properties it owns.
But diversification alone isn’t the reason to buy W.P. Carey. It has also increased its dividend every year since its 1998 initial public offering (IPO), putting it on the verge of becoming a Dividend Aristocrat — those companies in the Standard & Poor’s 500 Index that have raised their payouts for at least 25 years straight.What’s really fascinating about W.P. Carey, however, is how well it puts its diversification to […]
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