You Could Be Earning Passive Income With This Simple Strategy That Outperforms the S&P 500
If you’re eager to earn passive income, real estate investment trusts (REITs) offer a straightforward way to access consistent returns from real estate without the hassle of managing properties. And they’ve outperformed traditional stock market indexes over long-term investing periods.
Key Takeaways
- REITs offer a passive income stream with dividend yields of about 4%. In the long term, REITs have often outperformed the S&P 500.
- Individual REITs provide higher potential returns but come with more risk, while REIT exchange-traded funds (ETFs) offer diversification and stability.
- REITs can provide exposure to various real estate sectors—such as office, residential, and commercial—enabling broader diversification.
