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Real Estate Investment Trusts (REITs)

REITs are companies that own and actively manage income generating real estate. REITs are required to pay out 90% of their taxable income to shareholders annually in the form of dividends. The typical yield is commensurate with that of large-cap equities; with predictable revenue streams they are another method of diversification in a well-structured portfolio. REITs are appealing to many investors, particularly those looking for stable growth, income or high dividend yield in a tax deferred portfolio.