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EITs provide a cheaper, more passive, and predictable avenue for real‑estate earnings. According to Motley Fool Money’s Financial New Year’s Resolution Report, over half of Americans intend to set a financial goal for the coming year—boosting income, investing more, or launching a side business. Purchasing a rental property is one way to pursue these aims, yet it often demands a hefty upfront outlay, hands‑on management, and the risk of a problematic tenant or property turning a profit into a loss.

    Instead, a real‑estate investment trust (REIT) can deliver passive income with a lower initial investment, true passivity, and steady dividend payouts. Below are two leading REITs worth considering for 2026.

    Invitation Homes (INVH) focuses on single‑family rentals, owning over 86,000 homes, holding joint‑venture stakes in nearly 8,000 additional units, and managing more than 16,000 properties for third‑party investors. Its portfolio spans more than a dozen metro areas, targeting markets with above‑average population and employment growth. The scale and in‑house management reduce costs and diversify risk. Invitation Homes pays a quarterly dividend of $0.30 per share ($1.20 annually), having increased its payout by 3.4% in December and raising dividends every year since its 2017 IPO. With shares around $30, the REIT offers a 4.3% yield—$430 of annual dividends per $10,000 invested. Growth comes from rising rental income as leases renew, new acquisitions from third‑party sellers, vacant homes, and builder‑direct purchases, as well as expanding its third‑party management platform and providing builder loans.

    Realty Income (O) holds a diversified mix of commercial properties—retail, industrial, gaming, and more—secured by long‑term net leases with major tenants such as FedEx, Home Depot, and Walmart. The REIT owns over 15,500 properties across the U.S. and Europe, including grocery stores, warehouses, casinos, and data centers. It issues a monthly dividend of $0.27 per share ($3.24 annually) and has increased its payout 133 times since 1994, including 113 consecutive quarters, growing at a 4.2% compound annual rate. The current yield is 5.7% at a price below $60 per share. Realty Income benefits from contractual rent escalations in its long‑term leases and continues to grow through sale‑leaseback purchases, acquisitions from other investors, build‑to‑suit projects, and real‑estate‑backed credit investments.

    While owning a rental property can raise income, it is not truly passive and may lack predictable cash flow. High‑quality REITs like Invitation Homes and Realty Income offer lower upfront costs and more reliable, passive returns, making them attractive alternatives for investors seeking steady real‑estate income.