March Madness for REITs? Here's a 'final four' for investors seeking dividend income.

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Analysts at Jefferies expect these real-estate investment trusts to keep increasing payouts through 2025.

“Final four” is an eye-popping term, and will signal maximum excitement for fans of the NCAA Men’s Division 1 Basketball Tournament, when we see which teams win games among the “elite eight” on March 26.

A REIT is a company that owns property or invests in mortgage-backed securities and distributes at least 90% of its earnings to shareholders as dividends, in return for tax advantages. Most dividends received by investors are taxed as ordinary income. For its “elite eight” REITs, Jefferies narrowed the list to companies with “solid dividend outlooks,” before narrowing further to its “final four” that it rates a “buy” and are on the firm’s “conviction list.”

 

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