How to Easily Collect Passive Income From Real Estate Without Buying a Rental Property

Core Insights - Real estate investment trusts (REITs) provide a passive income opportunity through professionally managed rental properties, distributing cash flow to investors via dividends [2][14] Group 1: Invitation Homes - Invitation Homes (INVH) manages over 110,000 homes across 16 housing markets, offering diversification that reduces risk and supports steady income for dividend payments [5][7] - The REIT pays quarterly dividends of $0.29 per share, translating to an annual payout of $1.16 and a dividend yield of approximately 3.5% [6] - The company retains over 70% of its cash flow for reinvestment in new rental properties, including recent partnerships to acquire over 300 homes for more than $100 million [7][8] Group 2: Realty Income - Realty Income (O) owns a diversified portfolio of 15,600 properties across the U.S. and Europe, generating stable cash flow through net leases with major tenants [10][13] - The REIT pays monthly dividends of $0.269 per share, amounting to an annual payout of $3.228 and a dividend yield exceeding 5.5% [11] - Realty Income has a strong track record of increasing dividends, having raised its payment 131 times since its public listing in 1994, with a compound annual growth rate of 4.2% over the past 30 years [12][13]