These are firms that lease properties to tenants and distribute the cash to shareholders. And the returns can be very attractive due to tax advantages they have.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Earning income

Some REITs come with very high dividend yields. But while this can be a warning sign, a few are worth a closer look.

A 7.5% annual return is better than a savings account. And investing at that rate can bring big results over time. In Year One, a £10,000 investment earns £750. But reinvesting the dividends at the same rate means more income next year. 

At the same rate, the return in Year Two reaches £806. And by Year 10, it reaches £1,437 – more than twice the Year One return. After 30 years, this process returns £6,108 in dividends. That’s income that investors don’t have to do any work for. 

The big question is how to find 7.5% opportunities. Fortunately, the UK is an unusually good place to look. 

Primary Health Properties

Primary Health Properties (LSE:PHP) owns GP surgeries and health centres, and it’s a long-term passive income machine.

Its average lease has almost 10 years to run and the bulk of its income comes from the NHS. That’s about as reliable as it gets.

That reliability however, comes at a cost. It means chances to increase rents don’t come around often and negotiating can be tough. There’s also a risk that a change in government policy could affect demand. That’s impossible to rule out. 

The firm has however, recently acquired its biggest competitor. That should strengthen its negotiating position. 

Dividends are never guaranteed, but in terms of a reliable 7.5% yield, Primary Health Properties has to be worth considering.

AEW REIT

AEW REIT (LSE:AEWU) is the opposite of Primary Health Properties. But there’s more than one way to be a great investment.

The firm’s portfolio is a mix of different property types. These include leisure centres, gyms, and car parks.

The average lease is also much shorter, with less than six years to expiry. That obviously creates a risk of vacancies. With risk however, comes opportunity. AEW looks to use expiring leases as a chance to negotiate higher rents.

As a result, the firm focuses on properties with certain feafures. This can be low competition or scope for improvement.

Finding a 7.5% dividend yield with real growth potential is rare. So AEW has to be worth a closer look at today’s prices.

UK REITs

Stable businesses and high yields are an attractive combination. And UK REITs have been attracting attention recently. There are however, still some opportunities that I think are worth considering. These include Primary Health Properties and AEW.

A portfolio of stocks like these could be a valuable asset. And reinvesting dividends could generate real passive income.

The post How to invest £10,000 to aim for a £6,108 annual passive income appeared first on The Motley Fool UK.

That means investors only have one week left to get cash into their accounts. But while they don’t have to invest that straight away, there are plenty of interesting opportunities worth considering right now.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Buy the dip?

One potential idea is InterContinental Hotels Group (LSE:IHG). Shares in the FTSE 100 hotel chain are down 6% in the last month. 

The main reason is the conflict in Iran, which is disruptive to travel and tourism. And the risk is that it continues longer than expected.

A 6% decline isn’t exactly a crash, but this is an unusually high-quality business. Its low capital requirements make it very attractive.

This comes from not owning the hotels in its system outright. Operating costs get left to local owners who pay to be part of the firm’s network.

It also has an attractive growth pipeline representing 33% of its existing network. And the cost of that expansion should be minimal.

The stock isn’t exactly in deep value territory. But a quality business that’s facing temporary challenges might be worth checking out.

Keeping it simple

A stock that has gone down a lot is Diageo (LSE:DGE). A 54% decline means it’s at a price that would have been unimaginable five years ago.

Since 2021, though, revenue growth has stalled and margins have contracted. That’s due to a number of issues, some of which are still ongoing.

One of these is changes in consumer preferences. And despite having a strategy, Diageo has been slow to react to these.

That, however, is changing. Under Sir Dave Lewis, the firm is looking to use its scale to be more competitive on price. 

It isn’t guaranteed to work, especially with consumer budgets under pressure. But it’s clear that doing the same thing is also risky.

The firm also has plans to improve its balance sheet and simplify its operations significantly. At today’s prices, I think it’s worth a look.

Something a bit different

It’s not uncommon to find real estate investment trusts (REITs) with high dividend yields. But AEW UK REIT (LSE:AEW) is a bit different.

REITs usually focus on securing long leases on properties with high demand to secure reliable income. AEW, however, does the opposite.

Long-term contracts offer stability, but often at the cost of growth. And high demand often leads to more competition from rivals.

Instead, AEW focuses on properties where supply is scarce, limiting choices for tenants. And shorter leases create opportunities to increase rents.

The downside is that if a tenant goes bust, it’s harder to find another one. That’s a risk, but the compensation for it is a 7.7% dividend yield.

It’s an unusual approach, but the firm has an excellent record. So I think it’s one for dividend investors to think about before April 3.

Stocks and Shares ISAs

Investing in a Stocks and Shares ISA can make a huge difference to long-term returns. But the deadline for adding cash to an account this year is April 3.

If the £20,000 contribution limit isn’t added to an ISA, it can’t be carried over. So this might be the most important time of the year to think about your investing strategy.

The post Looking for last-minute ISA ideas? Check out these UK stocks before April 3 appeared first on The Motley Fool UK.

Making plans

The first step is to determine what a realistic annual rate of return could be. There’s no point forecasting something for the next decade that’s unrealistic, only to get disappointed further down the line.

For example, even though there are stocks with dividend yields above 10%, I think it’s a bit ambitious to target this for the portfolio each year. At the other end of the spectrum, I think it’s easily possible to beat the FTSE 100 average yield of 2.84%.

By active selection, I believe a dividend portfolio could target a yield of 6%-8%. This would maximise potential reward while avoiding very-high-risk stocks.

From there, we can do some reverse engineering. With an average yield of 7%, earning £1k a month in 2036 would mean the portfolio at that point would need to be £171.4k. In theory, someone could invest that lump sum now. Yet it’s unlikely that many have this much money ready to go. An alternative option would be to invest just under £1,000 a month. If dividends are compounded over the next decade, this could reach the £171.4k needed.

Of course, trying to predict anything a decade down the line is tough. The world can change rapidly, negatively impacting companies and future dividend flows. However, it provides a guide to the ballpark figures and yields needed to make the goal a reality.

Property in focus

One stock that could be considered for this goal is AEW UK (LSE:AEWU). The real-estate investment trust (REIT) share price is up 11% in the past year, and it boasts a 7.25% dividend yield.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

The managers focus on a diversified portfolio of small- and mid-sized UK commercial properties, mostly outside London. Unlike some other REITs, it actively looks to buy mispriced properties, which it then improves and leases out. Not only does this act to increase rental income, but it can also help secure capital appreciation in the future by hopefully selling at a higher price.

This gives it a good angle not only for income via dividends but also for share price gains. That’s because the net asset value of the portfolio increases over time.

From a sustainability perspective, the average lease term is over five years, and the loan-to-value on the properties is around 25%. This provides long-term revenue security and low risk from interest rate changes. However, one risk is that the commercial property market is cyclical. If the UK economy underperforms in the coming couple of years, it could pass through to weaker tenant demand for AEW.

Even with this, I think it’s a good stock for income investors to consider.

The post How much do you need in income shares to generate £1k a month in 2036 appeared first on The Motley Fool UK.

Take AEW REIT (LSE:AEWU) and Admiral Group (LSE:ADM). As well as having yields of 7% or above, these passive income heroes have other qualities that make them great value picks to consider

Want to know why they could turbocharge passive income? Read on.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Top trust

Real estate investment trusts (REITs) are designed to provide a larger and more reliable income stream than most other dividend shares. At least 90% of their rental earnings must be paid out each year, in exchange for juicy tax breaks.

Companies like AEW REIT enjoy a steady stream of rental income they can use to fund shareholder payouts. In this case, dividends are paid four times a year. The question is, can the business continue doing so given tough conditions in the broader economy?

After all, the trust is exposed to highly cyclical sectors like industrials and retail. On balance, though, I’m confident in its future dividend prospects. It has 132 tenants on its books, which guards group profits from widescale rent collection and/or occupancy issues.

What’s more, the weighted average unexpired lease term (or WAULT) until expiry sits at 5.6 years. This provides solid near-term earnings (and by extension dividend) visibility.

But what makes AEW REIT such an attractive value stock today? It doesn’t only provide plenty of bang for one’s buck with its 7.5% forward dividend yield. It trades at a handy 5% discount to its net asset value (NAV) per share.

FTSE 100 dividend star

At 7%, the dividend yield on Admiral’s shares is the third-highest on the FTSE 100. Can it meet City analysts’ lofty income expectations? I think so.

Unlike many high-yielding financial services shares, Admiral operates in the stable general insurance market. Consumer spending here remains largely unchanged across the economic cycle, providing dependable premium income it can distribute through dividends.

This company’s ace in the hole, however, is its dominant position in the motor insurance market. In the UK, it insures more cars than any other and has a 14% market share. It also has positions in overseas markets. This is important, as motor coverage is a legal requirement, providing earnings with additional protection.

Admiral’s cash-rich balance sheet also provides future dividends with support. According to latest financials, its Solvency II capital ratio was 194%, well above regulatory requirements.

There’s no such thing as a risk-free dividend share. In this case, dividends could fall short of forecasts if costs spike again, putting margins under strain. Admiral also has significant competitive pressures to navigate to keep growing earnings and payouts.

But on balance, I think it’s a solid dividend stock to consider today. It also trades cheaply right now. Its forward price-to-earnings (P/E) ratio of 12.3 times is way below the 10-year average of 17-18.

The post 2 dirt-cheap dividend stocks to consider in March with 7% yields! appeared first on The Motley Fool UK.

That’s why to try and sort the value traps from the genuine bargains, it’s important to take a closer look before investing in any high-yielding stocks.

With this in mind, I’ve been studying AEW UK REIT (LSE:AEWU). Based on amounts paid over the past 12 months, the real estate investment trust (REIT) is currently (30 January) offering an amazing yield of 7.5%. And in my opinion, I think it’s an excellent passive income opportunity to consider.

Here’s why.

A different business model

Like all REITs, to preserve certain tax advantages, AEW must return at least 90% of its relevant profit to shareholders each year by way of a dividend. And since early 2016, it’s been remarkably consistent with a payout of 2p each quarter.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

The trust has an unusual approach in that it buys commercial property leases it says are mis-priced and soon to expire. At 30 September 2025, its average weighted unexpired lease term before break clauses kick in was just 3.95 years. Buying short leases gives it an opportunity to negotiate rent increases relatively quickly after purchase.

And this approach appears to be working. Since early 2021, it’s outperformed the MSCI/AREF UK PFI Balanced Funds Quarterly Index, its chosen benchmark, by nearly 7%.

Unusually for the sector, the trust focuses on smaller commercial premises (typically less than £15m). And it has a good mix of industrial, retail, and office properties in its portfolio.

Some challenges

But there are a couple of things that could impact its future dividend. One issue that needs to be taken into account is the trust’s debt facility, which is due to be renewed in May 2027. Given its relatively low loan to gross asset value – it was 25.2% at 30 September — extending this shouldn’t be too much of a problem.

But at the moment, it’s paying fixed interest of 2.959% per annum. Given the higher interest rate environment in which we find ourselves, I suspect it will have to pay more post-renewal. For the year ended 31 March 2025, finance costs accounted for 10.5% of net rental income, so there appears to be plenty of headroom here.

Also, the trust’s focus on smaller properties means its tenants are mainly small- and medium-sized enterprises. These might not be as financially robust as the clients of other REITs who have blue-chip companies occupying their premises. The risk of bad debts is therefore higher.

My view

Despite these concerns, latest figures show that the trust enjoys a 93.68% occupancy level. In addition, its rental yield’s in excess of 8%. It also has a good track record in selling leases significantly above what it paid for them.

On balance, although dividends can never be guaranteed, I think AEW’s looks reasonably secure for now. And with a yield of 7.5%, passive income investors are likely to believe there’s an opportunity to consider here. And in my opinion, they’d be right.

The post This 7.5% dividend yield looks like a rare passive income opportunity to me appeared first on The Motley Fool UK.

As a result, I think there’s a real opportunity for investors looking for passive income to target a 7.5% annual return. And on a £20,000 contribution limit, that’s £1,500 a year. 

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Real estate

UK real estate investment trusts (REITs) look good value at the moment. That’s not just my view – there’s been a lot of institutional interest in the industry in the last few months and years.

One example is AEW UK REIT (LSE:AEWU). The company leases a mixed property portfolio and the dividend yield is just over 7.5%. 

The reason this firm stands out is that it takes a different approach to most REITs. The usual path is to focus on long leases in areas where demand’s high, but AEW looks for the opposite.

Leases that have less time to expire can bring opportunities. Renewing brings chances to increase rents, which is a key source of growth in an industry where this can be a challenge.

As with other prices, rents are a function of supply and demand. But instead of looking for high demand, AEW focuses on the supply side of the equation and focuses on limited competition. 

In this way, the company hopes to be able to generate above-average growth without getting into overcrowded markets. It’s a really interesting strategy that I think is well worth a closer look.

Balance sheet

Stocks with 7.5% dividend yields don’t usually come with risks. The key for investors is to figure out what they are and work out how to accommodate them in a portfolio. 

With AEW, one of the things to consider is its unusual debt profile. Its entire facility expires in 2027, while the average tenancy has another four years until its first break. When a REIT’s debt matures before its loans expire, this creates risk. Having to refinance at higher rates can increase borrowing costs without being able to raise rents to compensate.

That’s something for investors to keep an eye on with AEW at the moment. But the firm’s focus on short leases means that it should be in this situation less often than other REITs over the long term.

On top of this, it’s worth noting that AEW’s borrowings are relatively low for a REIT of its size. And a strong balance sheet should help it attract favourable terms when it comes to refinancing.

Given this, I think it’s one of the few stocks with a 7.5% yield that income investors should consider seriously. In an industry that can be somewhat undifferentiated, it offers something unusual.

Diversification

Whether it’s building wealth or earning passive income, building a diversified portfolio is a key part of investing well. That means finding stocks to buy across industries and geographies. 

Given this, investors targeting a 7.5% dividend in a Stocks and Shares ISA need to find more opportunities than just AEW. But I think there are others available for those who can find them.

The post Here’s how to invest £20,000 in an ISA for a £1,500 second income appeared first on The Motley Fool UK.

In general, investing is riskier than saving and returns from the former aren’t guaranteed. But when things go well, the difference between the passive income generated by each can be huge. 

Savings: slow and steady

Right now, savings accounts are typically offering around 3.5% interest. At that rate, putting aside £100 a month will build an account returning £2,000 a year within 30 years. 

There’s a lot to be said for this. The most obvious is that the cash is virtually guaranteed to be there if you ever need to take it out at any point in the next three decades.

That’s a big advantage, but there is a big drawback to savings. It takes a long time to earn meaningful income and a 3.5% annual return is barely enough to stay ahead of inflation.

For those who won’t need their cash in the near future, having access to it isn’t really much of an advantage. In these cases, investing offers a shot at something much bigger.

Investing: accelerated returns

Buying shares in companies that return cash to investors as dividends is another way of trying to earn a second income. And the returns can be much more impressive. 

Dividends are never guaranteed and share prices can be volatile. But the increased risks often come with much higher potential rewards for investors over the long term. Right now, there are stocks available that come with dividend yields of 7.5%. At that rate, a £100 monthly investment compounds to a £2,000 annual income within 14 years.

Investors do need to be careful – big dividend yields often come with high risks. But there are at least a couple of stocks that I think income investors should take a close look at.

Real estate

AEW REIT‘s (LSE:AEWU) a good example. It’s not the best-known business in the world but it’s a real estate investment trust (REIT) that comes with a 7.5% dividend yield.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

The firm owns a portfolio of 34 properties, but its strategy is what makes it unique. It focuses on short leases, where renewals create chances to increase rents with new contracts.

That can be risky – there’s always a chance that tenants might not renew and that would create a potential problem. But the company has a strategy for managing this.

AEW focuses on opportunities where alternatives are limited. That both helps limit the risk of them going elsewhere and strengthens the firm’s ability to negotiate rent increases.

Risks and rewards

There aren’t many stocks with 7.5% dividend yields that I think are worth considering, but AEW REIT is one of them. Its unique strategy sets it apart from other REITs.

Given the risks of investing, nobody should be ploughing all of their money into this – or any other – stock. But I definitely think it’s worth a look at for someone with spare cash. 

Investing at 7.5% means a chance of reaching investment targets in half the time compared to saving. And that’s got to be worth considering for investors looking for a second income.

The post You can save £100 a month for 30 years to target a £2,000 a year second income, or… appeared first on The Motley Fool UK.

They also offer simplified exposure to the real estate market without the high cost and risk of direct investment. Let’s have a look at the pros and cons of this unique investment option.

Key benefits

REITs give investors access to large-scale property development projects in residential, commercial and industrial spaces. The relatively low initial investment, combined with an experienced management team, makes them particularly attractive for beginner investors.

What’s more, the rules require them to distribute at least 90% of their taxable income to shareholders annually. This typically leads to high and consistent dividend yields, which is attractive for income-focused investors.

Moreover, they have far higher liquidity than standard real estate, trading on major stock exchanges where the shares can be bought and sold easily.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Notable risks

While the rules result in higher yields, they also limit retained capital for further investment. This can result in slow or even negative growth, which could eat into returns during weak market periods.

They’re also highly sensitive to interest rate fluctuations, which can limit profits during high-rate periods. In addition, they typically include ongoing management fees which must be accounted for when calculating potential returns.

One example

AEW UK (LSE: AEWU) is an up-and-coming REIT that started life just 10 years ago. Its strategy is to buy assets with shorter leases, aiming to exploit re-letting and redevelopment opportunities. It’s an interesting angle — but one with the added risk of tenant departures and higher vacancy rates. 

It’s also very small, with a £167m market-cap, putting it at higher risk of volatility. The advantage being that the market tends to undervalue small-cap shares. As such, it has a net asset value (NAV) of 109p per share with shares currently trading at only 103p.

The past decade has dealt its fair share of ups and down but despite everything, it’s grown about 30% since Covid. Analysts expect the current growth trajectory to continue, with the average 12-month price target up 10%.

Importantly, its 7.6% yield isn’t only above average but is well covered by both earnings and cash flow. What’s more, its balance sheet looks healthy, with only £59.9m in debt against £174.4m in equity.

Earnings took a dive in 2022 but have made an impressive recovery, posting £24.34m in profit in 2024. Revenue in 2024 dipped slightly from 2023 but has been steadily increasing over the long term.

A long-term mindset

Whether investing in REITs, growth stocks or dividend shares, the key to building a solid passive income stream is a long-term mindset.

Investors who are quick to panic sell at the first sign of trouble often regret it down the line. No investment journey is smooth, and stomaching the ups and down is part of the ride.

But steady and reliable income stocks can help ease the turbulence. The key is picking the rights ones. With steady growth, a clean balance sheet and a impressive track record, I think AEW UK REIT is one worth considering.

The post Targeting passive income? Why every investor should consider REITs  appeared first on The Motley Fool UK.

Starting today, I’ll track both, see what happens, and report back with the results in due course. I’m not putting my own money behind what ChatGPT says, but I’ll be keeping score.

The portfolios

Right then, let’s get to it. The rules are pretty straightforward – dividends are reinvested back into the shares of the companies they came from and the highest total return wins. 

With that in hand, let’s get to the portfolios. Since ChatGPT gave me suggested weightings for each position, here are both portfolios with percentage allocations for each choice:

In both cases, we’ve mostly stuck to the FTSE 100 for ideas, but each team has an outsider. ChatGPT’s gone for OSB Group (LSE:OSB) and I’ve selected AEW REIT (LSE:AEWU).

Having seen the teams, I’m feeling pretty good. But I didn’t expect to see OSB Group making the list, so let’s have a closer look at the wildcard on Team ChatGPT.

OSB Group

OSB’s a specialist mortgage and savings business. It works a lot like a bank – taking in deposits, making loans, and earning a profit on the difference between the interest rates.

It specialises in loans for Buy-to-Let investors, developers, and commercial properties. Its focus in this area can give it an edge over more general competitors in terms of assessing risks.

Its lending margins have been pretty strong, but they’ve been starting to come down recently. This is due to higher interest rates increasing funding costs, which is a risk worth noting.

At the moment though, there’s a dividend yield of around 6% on offer. But while I’m interested in taking a closer look, I don’t think I like it as much as anything I’ve chosen.

AEW REIT

The wildcard in my portfolio is AEW REIT – a real estate investment trust (REIT) that doesn’t play by the usual rules. And it could just be the ace up my portfolio’s sleeve.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Conventional wisdom says REITs are supposed to focus on properties with long-term leases in high-demand industries. That’s the usual way to try and achieve consistent rental income.

AEW focuses on unpopular sectors where demand’s weaker, but supply’s also low. And it looks for leases that are closer to expiry as potential opportunities for rent increases.

It’s a high-risk strategy with a much higher chance of vacant buildings. But the company’s executed incredibly well on its strategy and I think income investors should take a look.

Smart money

This particular competition is just for fun. I’m not willing to put my own money behind a portfolio generated by ChatGPT, especially when it contains a name I don’t know very well.

I am however, interested to see how the two portfolios get on. I’ll set up a simulation using my broker’s online platform – watch this space for future updates.

The post Can I beat ChatGPT in picking great dividend shares to buy? appeared first on The Motley Fool UK.

Right now, the stock comes with a 7.5% dividend yield. While this might ordinarily be a warning sign, the company has a differentiated approach that makes it stand out in the UK REIT industry.

The requirement to return 90% of its taxable income to investors can give REITs limited growth opportunities. But AEW has found an unusual way around this problem. 

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Differentiated strategy

For obvious reasons, passive income investors typically look for long leases in industries where demand is high. The company, however, does exactly the opposite of this.

Instead of long leases, it focuses on contracts that are closer to expiry. Where others see risks, the firm sees the chance to renew on better terms, repurpose the property, or redevelop to add value.

The usual concern is that tenants can leave when their leases expire, creating a risk of unoccupied buildings. But AEW looks to offset this by focusing on opportunities where supply is limited.

Balance sheet

It operates with unusually low debt levels. Its loan-to-equity ratio is around 25%, which is well below the level of some of its larger – and more conventional – counterparts. 

This doesn’t, however, mean the company’s balance sheet is entirely without risk. The business has a £60m loan at less than 3% interest that’s set to mature in 2027.

That’s over a third of AEW’s portfolio value and it’s unlikely to be able to refinance that on the same attractive terms. And this makes it a threat to the firm’s profitability in the short term.

Investors shouldn’t underestimate this risk. But with the average lease having around four years to the first break opportunity, it shouldn’t be long until it’s able to try and offset the extra cost.

Passive income

Despite the risks, I think a 7.5% dividend yield makes AEW an interesting passive income stock. As a result, I’m looking seriously at it as a potential addition to my Stocks and Shares ISA.

I think a lot of companies – and investors – focus on sectors where demand is strong, with industrial distribution being a good example. But that’s only half the equation. 

The other side of the coin is supply. As a result, there’s been a lot of building in the warehouse industry recently, which investors also need to pay attention to. 

Demand might not be as strong in the areas AEW focuses on, but there’s also less supply. And I think that could mean the equation is just as favourable – and possibly even more so.

Breaking the mould

By conventional metrics, AEW doesn’t look like a particularly attractive opportunity. But sometimes being a good investor is about looking for businesses that do things differently.

AEW is a lot smaller than a number of other REITs, but this gives it more flexibility and better opportunities for future growth. That’s why it’s on the list of stocks I’m looking at right now.

The post 7.5% yield! Is this REIT my ticket to a growing second income? appeared first on The Motley Fool UK.