REIT (Real Estate Investment Trust)
A company that owns income-producing real estate — apartments, offices, warehouses — and trades like a stock. By law it must pay out most of its income as dividends.
By Findley's Finance · Last reviewed: September 2026
Why it matters
REITs let you invest in real estate without buying a building: one share buys a slice of hundreds of properties, liquid and divisible. The mandated high payouts make them dividend machines, but those dividends are mostly taxed as ordinary income, so REITs belong in tax-advantaged accounts when possible. They are stocks first, real estate second — expect stock-like volatility.