Taking Your First Step into REITs Investing

This article was first published on SmallCapAsia.comĀ 


With REITs investing gaining popularity these days, you may be tempted to jump on the bandwagon and generate some dividend income of your own. However, for one who is new to investing, taking a leap into the unknown may not sound like a good idea.

Here is a quick guide to what you may want to look out for when choosing a REIT.

1. Nature of Business

Firstly, REITs can come in the form of specific sectors, such as retail, industrial, hospitality or commercial. As REITs investing is a long-term commitment, you may want to identify the nature of business which will be able to provide consistent, if not better, returns over the next 5-10 years.

2. Profitability

What interests you next will be the dividends it can offer. As it is mandated for a REIT to distribute at least 90% of …

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