Real estate investment trust (REIT) stocks are on fire. The income-rich stocks have emerged as promising investments, according to investors.

REITs allow you to invest hassle-free in real estate. They own or finance properties and pay at least 90% of taxable income as dividends.

With elevated rates being one main headwind for the REIT sector. This notwithstanding, these challenges have brought some segments at bargain prices.

REITs are expected to return an 8-10% return in 2025, primarily from dividends. Investors need something that can grow dividends.

Some REITs shine with high dividend yields. For example, Global Net Lease boasts over 15%, while Community Healthcare Trust offers around 10.4%.

There are a number of such REITs that analysts such as Jussi Askola have offered out as having good prospects for dividend growth.

What does the future hold for REITs? Interest rates going static or down must lead to higher valuations, thus supporting growth.