Consumers are about as pessimistic about the state of the economy as they have ever been, amid a weakening labor market, disruptions related to the fall 2025 government shutdown, and concerns about an AI bubble. Though the S&P 500 appears to be continuing its ascent, having climbed by almost 17% this year, it is not surprising that investors are growing cautious as they wait for a (potentially major) course correction. Even after backing off from all-time highs in recent weeks, gold is trending upward once again, a sign that investors are seeking defensive plays.
One often-overlooked source of stability when investors are cautious is the real estate investment trust (REIT) space. These companies pay out the majority of their taxable income as dividends, helping to provide investors with a steady stream of passive income even if other sections of the market are poised to fall. Below are four REITs worth a closer look, each offering high yields and potential upside.
