REITs provide investors with the advantages of commercial real estate investment combined with the benefits of owning a publicly traded stock. Therefore, fundamentally strong REITs, such as American Tower Corporation (AMT), Lamar Advertising Company (LAMR), and Gaming and Leisure Properties, Inc. (GLPI), might be worthy buys for passive income.
REITs are required by law to pay out at least 90% of their taxable income to shareholders in the form of dividends. REITs generate stable income from the rents paid by tenants of commercial properties, who often commit to long-term leases, or from the interest payments on the financing of these properties. Hence, amid economic turmoil, REITs conventionally emerge as stable investments.
