3 Top REIT Stocks to Buy in June
Real estate investment trusts (REITs) have long been a favored investment option for that portion of your portfolio focused on consistent income and long-term capital appreciation. They own pools of income-generating properties in a wide range of industries, and there are more than 200 publicly traded REITs.
While their holdings and business models are diverse, they all share this attribute: the requirement to pay at least 90% of their taxable income as dividends to shareholders each year. Although they're typically resilient, many REITs have struggled lately because of high interest rates that make financing their own operations more expensive and hurt many of their tenants.
That means there are bargains to be had in the REIT sector, and three to consider are American Tower (NYSE: AMT), Federal Realty Trust (NYSE: FRT), and Realty Income (NYSE: O). The chart below uses the Vanguard S 500 EFT to show how this trio has lagged the broader market in the past year in terms of share price.
Source Fool.com
