Best Stock to Buy Right Now: Realty Income vs. NNN REIT

Investors looking for dividends might want to consider real estate investment trusts (REITs). That's because a REIT's tax structure requires it to pay out at least 90% of its taxable income as dividends.REITs tend to specialize in owning different types of properties, leasing the properties out, and collecting rent. One of the popular property types is retail, but it can cause REITs headaches in tough economic times if not properly managed. For instance, many REITs struggled during the early days of the COVID-19 pandemic. For retail, the struggle was out of concern that e-commerce would cause physical stores to struggle. They also took a hit in 2022 and 2023 as interest rates rose to combat inflation. Higher interest rates mean it costs more for REITs to buy properties to rent out.Many REITs managed to navigate those lean years and have fully recovered. For the first nine months of 2025, REITs specializing in retail properties returned 6.9% on average, according to the National Association of Real Estate Investment Trusts (Nareit). Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool