BOSTON ( TheStreet) -- Heightened speculation that the Federal Reserve may keep interest rates low for a longer period confirms its commitment to safeguard the economy.
Real estate investment trusts, or REITs, thrive when interest rates are low because their borrowing costs remain cheap. REITs are required to distribute the vast majority of their income to shareholders, so they offer ample quarterly distributions and lofty yields. Some forecasters expect a near-zero federal funds rate until 2012, making REITs attractive investments. Here are 10 top-ranked high-yield REITs.
10. Simon Property Group (SPG) owns retail properties, including shopping malls. Simon swung to a second-quarter profit of $152 million, or 52 cents a share, from a year-earlier loss. Revenue grew 3.9%. The operating margin extended from 25% to 45%. Simon's stock trades at a forward earnings multiple of 38, a 35% discount to the REIT industry average. It's expensive based on book value and sales per share. Two thirds of analysts rate the stock "buy."
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV