The Best REITs to Diversify Your Investment Portfolio

REITs permit retail investors to own a piece of commercial real estate, which most cannot do on their own.

Hence, they are suitable for investors seeking to own commercial real estate but do not have the capital to own it directly. In addition, REITs are ideal for investors seeking higher dividend yields.

Realty Income Corporation

The trust is known for its monthly dividend payments and increases. In addition, the stock is a Dividend Aristocrat, meaning it has raised the dividend for at least 25+ years in a row. Total revenue was ~$2,065 million in 2021.

Realty Income owns more than 11,000 commercial retail properties after acquiring Vereit. These are primarily standalone properties in all 50 states, Puerto Rico, the United Kingdom, and Spain.

Medical Properties Trust

The trust was founded in 2003 to purchase and own hospitals. Few other REITs offer this type of exposure to investors, so it provides diversification.

Today, MPW is one of the largest owners of hospitals globally. It has acquired more than $12 billion worth of properties in the US and nine other countries.

Public Storage

Adding further diversification to our REIT portfolio takes us to Public Storage (PSA). The REIT was founded in 1972 to acquire, develop, own, and operate self-storage facilities.

Today, the trust is the market leader in the US and has the No. 1 position in 14 out of the 15 top markets where it operates. Los Angeles, San Francisco, and New York are the top three markets.

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