The Overlooked Sector Paying 5%+ Yields That Wall Street Keeps Quiet About

Core Insights - REITs are often overlooked as investments despite their potential, creating opportunities for investors [1] - The current environment features income-producing real estate companies offering yields around 5% backed by tangible assets and inflation-indexed leases [2] - Interest rates are projected to decline by 2026, alleviating previous headwinds for REITs and allowing for growth in rents and distributions [3] Group 1: REIT Advantages - REITs are required to distribute 90% of taxable income to shareholders, ensuring consistent cash payouts and elevated yields [4] - Many REIT leases include rent escalators tied to CPI, providing built-in inflation protection for investors [5] Group 2: Company Highlights - Vici Properties focuses on gaming and experiential real estate, currently yielding 6.53% with a $1.80 annual dividend and a 4.13% growth rate over the past eight years [6][7] - NNN REIT has raised its dividend for 37 consecutive years, yielding 5.93% with a $2.40 annual dividend and a diversified tenant base across necessity-based retail [9][12] - Realty Income Corporation offers a monthly dividend yield of 5.65% with a $3.24 annual distribution, having increased dividends for 22 consecutive years [13][14][15] - Simon Property Group operates premium malls and outlet centers, currently yielding around 4.78% with an $8.80 annual dividend and a 5.56% growth rate [16][17][18]