BOSTON ( TheStreet) -- Federal Reserve officials reiterated yesterday that they will keep interest rates near a record low of about zero for an "extended period" because inflation is under control and unemployment is still near a 26-year high.
Goldman Sachs (GS) economist Edward McKelvey predicts Fed policymakers won't increase rates until 2012. If so, real estate investment trusts, or REITs, which thrive on low rates, are poised to extend gains. REITs are required to pay 90% of their income to investors, so they offer high yields.
Here are analysts' 10 favorite REITs, based on median ratings. Mortgage REITs, in particular, will benefit if the Fed remains steadfast in its commitment to low interest rates. Concerns about slower U.S. economic growth and Europe's debt crisis have increased the relevance of dividends.
The Vanguard REIT ETF (VNQ) has advanced 11% this year, while the large-cap S&P 500 Index has dropped 2.1%. Investors seeking income should investigate these REITs first. Of note: REIT distributions are taxed differently than dividends.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV