There are thousands of penny stocks. However, when it comes to penny stock REITs (real estate investment trusts), there are only a handful. According to Finviz, there are only 39 stocks trading on major U.S. exchanges that are classified as real estate stocks.
Out of these 39, less than half of them are qualified as REITs. Filter out the REIT penny stocks that currently do not pay a dividend, and the list gets even smaller. Only twelve of them currently pay a dividend.
Filtering this list further, to only penny REIT stocks that pay what can be considered “high” (5% or greater), and there are only seven left standing. The question now is whether the seven stocks fitting this criterion are worthy of an investment, whether for yield or for capital appreciation potential.
While offering above-average yields, these seven penny stock REITs come with a high degree of risk. Let’s dive in, and see whether the potential rewards outweigh the risks.
This post originally appeared at InvestorPlace.