Real estate investment trusts (REITs) are a popular choice for investors looking to generate passive income through dividends while diversifying their portfolios. By investing in REITs, investors can benefit from the stability of real estate assets and the potential for steady income. However, it’s important to diversify across different sectors to minimize risk and ensure a more balanced portfolio. In this article, we will explore three REITs that can help you earn $1,000 in passive income.
Public Storage (NYSE: PSA) is a well-known name in the self-storage industry and has been operating as a REIT since 1972. With over 3,000 storage facilities across the country, Public Storage offers investors exposure to a diverse portfolio of real estate assets. In addition to rental income, the company generates revenue from selling moving supplies and insurance policies to customers. Public Storage has a market cap of over $50 billion and pays a healthy dividend of 4.18%.
Realty Income Corporation (NYSE: O) specializes in leasing single-tenant properties to nationally recognized retailers, such as Walmart and CVS Health. The company’s long-term leases with rent increases provide investors with a reliable income stream. Realty Income has a market cap of $45.6 billion and has a dividend yield of 6%. The company has a strong track record of making monthly distributions and increasing dividends for the past 26 years.
Equinix (NYSE: EQIX) is a global leader in providing interlinked data centers to large organizations with a heavy reliance on data. As the demand for digital infrastructure grows, Equinix is well-positioned to deliver consistent passive income to its shareholders. With a market cap of $71 billion and an earnings per share of 9.96, Equinix offers investors a dividend yield of 2.2%. The company generated $8 billion in revenue from its 10,000 customers in 2023.
To earn $1,000 in passive income from these three REITs, you can follow a simple formula. Start with an initial investment of $25,000 and split it evenly across Public Storage, Realty Income, and Equinix. Based on their dividend yields, you can expect to earn approximately $348 from Public Storage, $500 from Realty Income, and $183 from Equinix, totaling $1,031 in annual passive income. If you’re looking to earn $10,000 in passive income, you would need to scale up your initial investment accordingly.
In conclusion, diversifying your REIT portfolio across different sectors can help you generate steady passive income while minimizing risk. By investing in REITs like Public Storage, Realty Income, and Equinix, you can build a well-rounded portfolio that offers a mix of stability and growth potential. Consider these three REITs as part of your investment strategy to earn passive income and build wealth over time.
