Investing in real estate can be a lucrative way to generate passive income, and the good news is that you don’t need a large sum of money to get started. While purchasing a rental property can require a significant initial investment, there are other real estate investment options that have much lower entry costs. Real estate investment trusts (REITs) are one such option, offering attractive passive income streams with minimal investment requirements.
One of the most popular REITs is Realty Income, which boasts a diverse portfolio of over 15,000 properties in the U.S. and Europe. The company’s properties are leased to a variety of leading companies, providing a stable rental income stream. With a current stock price of around $57 per share, Realty Income offers a monthly dividend of $0.2635 per share, equating to an annual dividend yield of 5.5%. The company has a track record of consistently increasing its dividend, making it an attractive option for investors looking to build passive income over time.
Another prominent REIT is W.P. Carey, which focuses on net lease real estate and owns a portfolio of industrial, retail, and other properties across North America and Europe. With a stock price also around $57 per share, W.P. Carey offers a quarterly dividend of $0.875 per share, resulting in a dividend yield of 6.1%. The company has been strategically repositioning its portfolio to focus on properties with better long-term growth potential, and has been actively acquiring new properties to drive rental income growth and dividend increases.
Both Realty Income and W.P. Carey provide investors with an easy way to start generating passive income. By investing in these REITs, individuals can gradually build a portfolio that produces a growing stream of passive income over time. These companies focus on owning properties that deliver steady rental income, allowing them to consistently increase their dividends as they expand their property portfolios.
In conclusion, REITs like Realty Income and W.P. Carey offer investors a great opportunity to start generating passive income with relatively low initial investment requirements. By investing in these companies, individuals can benefit from a steady stream of rental income and dividend payments, while also enjoying the potential for long-term growth and capital appreciation. Whether you’re a seasoned investor or just starting out, REITs can be a valuable addition to your investment portfolio.
