REIT

Created by Congress in 1960, A REIT, or real estate investment trust, is a business that owns, operates, or finances income-producing real estate and that complies with certain provisions of the Internal Revenue Code, one of which is that at least 90% of the income earned by a REIT must be paid as dividends to investors each year. For more information, read A Crash Course on the Benefits of REITs for Passive Investors.