
In today’s time, REITs are one of the top-performing sectors within the S&P 500, as an attractive option for passive income investors looking for steady cash flow and the potential for capital appreciation. Therefore, you might consider watching top high-yielding REITs Realty Income Corporation (O), VICI Properties Inc. (VICI), and Annaly Capital Management, Inc. (NLY) with potential growth prospects.
REITs are an effective choice for investors looking to increase cash flow while enjoying some tax efficiency. REITs must distribute at least 90% of their taxable income to shareholders as dividends. This further enhances the appeal of REITs among U.S. investors, as they can often benefit from reduced tax rates on qualified dividends.