Top REITs, Funds, Stocks Drive Long-Term Passive Income

Investors seeking monthly or passive income have diverse options including high-yield savings accounts, rental real estate, mutual funds, dividend stocks, and investment trusts. High-yield savings accounts offer modest interest rates around 3.5% to 4.3%, while real estate can generate rental income and long-term appreciation, though it requires significant capital and involves risks like maintenance and vacancies. Mutual funds like GMO U.S. Equity Allocation Fund, American Funds Growth and Income Portfolio, and Vanguard Value Index Investor provide diversified exposure with low fees and strong historical returns, making them suitable for retirement investing. Dividend stocks such as M&G, with forward yields of approximately 7.7%, provide consistent payouts, though investors must be cautious of dividend traps and economic risks. Real estate investment trusts (REITs) like Schroder European REIT offer resilient income through diversified property holdings across major European cities, benefiting from high occupancy and rent collection rates. Meanwhile, investors should also evaluate companies’ cash flow efficiency, as some cash-rich firms may struggle to reinvest effectively, impacting long-term profitability and returns.