Real estate investment trusts (REITs) exhibit a bond-like sensitivity to interest rates, yet have a stock-like exposure to the performance of the economy.
This year has been a banner year for REIT funds, with the Nareit All Equity REIT index returning 17.8% through May vs. 12.7% for the S&P 500.
Each of the following listed REITs owns strongly performing retail and commercial properties that form the backbone for their yields and total returns.
Index provider Realty Shares measures the dividend strength of companies. Three of the real-estate companies below had a rating of 4 — the second highest tier; the other has a rating of 3.