One of the most satisfying things in investing, in my view, is to see dividends or distributions credited to your account without you having to lift a finger. Even if you’re on holiday, real estate investment trusts (REITs) will continue quietly working behind the scenes, and generating income for you. That said, not all REITs are built the same. Some REITs are consistently dependable in generating income, while others may sometimes run into trouble and cut their distributions. Let’s find out how to best identify the reliable ones. In my mind, the best ones combine strong assets, dependable tenants, and disciplined REIT management.

Why REITs Are Popular Passive Income Investments

By regulation, REITs are required to distribute at least 90% of their taxable income to unitholders. This consistent stream of distributions creates recurring and relatively predictable income for investors, which is a huge plus. Finally, REITs allow you to gain exposure to real estate properties at a...