A key element of financial planning for a comfortable retirement is engineering a dividend-paying portfolio. This supplements investment returns with guaranteed payments in the form of a quarterly or annual dividend. One way of achieving this is identifying companies that offer reliable dividends, and that have grown consistently over the past several years. Dividend-paying mutual funds and exchange-traded funds (ETFs) also provide a diversified way of accessing such companies. There are many factors to consider here, from fund performance to expense ratio and dividend history.

Another dividend option worth considering is a real estate investment trust (REIT). With these, investors purchase shares in trusts issued by companies that finance, operate, and own income-producing real estate across various property segments. This provides access to smaller investors, allowing them to enjoy the gains accrued from holdings such as shopping centers, high rises, and multifamily complexes in ways that mimic stocks.

In addition to being highly liquid compared with traditional real estate holdings, REITs generate profits such as rental income that are distributed on a quarterly basis. Such assets can be taken out of the REIT or left in place to grow. They combine the reliability of a recurring income source with significant upward potential, should properties and overall markets rise in value.

This message is not meant to be a recommendation or solicitation. Before investing, consult with your financial advisor, CPA, and attorney.