Real Estate

REIT

Definition

Real Estate Investment Trust — a company that owns, operates, or finances income-producing real estate. REITs must distribute 90%+ of taxable income as dividends, making them popular for income investors. They trade on stock exchanges like regular stocks.

Related Terms

Dividend

A distribution of a company's earnings to shareholders, typically paid quarterly. Dividends provide regular income and are a sign of financial health. The average S&P 500 dividend yield is around 1.5-2%.

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