A REIT is a company that owns, operates, or finances income-producing real estate. REITs must distribute at least 90% of taxable income as dividends, making them popular for income investors.
Required Distribution: 90% of taxable income as dividends
A REIT owning shopping malls collects rent and distributes most of it to shareholders. VNQ (Vanguard Real Estate ETF) holds ~160 US REITs across residential, commercial, and specialty sectors.
AllInvestView tracks REITs with dividend tracking and sector allocation analysis.