One of the biggest investing stories over the next two decades may not revolve around artificial intelligence (AI) or cryptocurrency — it could be the historic transfer of wealth from Baby Boomers to younger generations.

According to Capgemini's 2025 World Wealth Report, approximately $83.5 trillion is expected to change hands over the next twenty years as Baby Boomers pass wealth to Gen X, Millennials, and Gen Z. By the end of 2035, nearly two-thirds of wealthy families are expected to have transferred inherited assets, making this one of the largest wealth shifts in modern history.

That changing demographic is already altering investment preferences.

Recent CNBC coverage has highlighted the rapid rise in young millionaires and the growing influence of Gen Z investors. Unlike previous generations, many younger affluent investors are embracing technology-driven investing while placing greater emphasis on tangible assets that can generate recurring income and long-term appreciation.

Meanwhile, family offices and ultra-high-net-worth investors have continued to allocate meaningful portions of their portfolios toward commercial real estate, income-producing properties, and publicly traded REITs as they seek diversification beyond traditional stocks and bonds.

For individual investors, publicly traded REITs offer many of the same benefits, including professional management, diversification, and attractive dividend income, without requiring millions of dollars to purchase commercial properties outright.

Even better, several affordable REITs currently stand out thanks to improving earnings outlooks that have earned them a favorable Zacks Rank while also offering dividend yields well above 7%.

Why the Great Wealth Transfer Could Be Bullish for REITs

Much of America's wealth is tied directly to real estate.

As inherited wealth increasingly flows toward younger investors, many beneficiaries are expected to expand exposure to property-related investments. While some will purchase residential or commercial real estate directly, others may prefer the liquidity and diversification offered by publicly traded REITs.

That approach can be especially attractive in today's environment.

To that point, REITs allow investors to collect sizable dividend income while participating in the long-term value creation of commercial real estate. With interest rates appearing closer to the end of their tightening cycle than the beginning, improving financing conditions could also provide additional support for many property owners over time.

Against that backdrop, investors may want to focus on REITs that demonstrate improving earnings expectations rather than simply chasing the highest dividend yields, and here are four such companies to consider.

1. CTO Realty Growth – CTO 

Zacks Rank #1 (Strong Buy)

Stock Price: $21

Current Dividend Yield: 7.05%

CTO Realty Growth (CTO Quick QuoteCTO - Free Report) ) owns a diversified portfolio of income-producing retail, mixed-use, and commercial real estate located throughout high-growth Sun Belt markets (Southeast and Southwest regions of the U.S.). 

In addition to rental income generated from its property portfolio, CTO also benefits from investments in Alpine Income Property Trust and other real estate assets that further diversify revenue streams.

Furthermore, management has continued to reposition its portfolio toward higher-quality assets capable of producing stable cash flow and long-term rental growth.

Those operational improvements have contributed to a much more favorable earnings outlook, supporting the company's strong buy rating.

Combined with a dividend yield above 7%, CTO provides an attractive combination of income and long-term property ownership.

2. Annaly Capital Management – NLY

Zacks Rank #2 (Buy)

Stock Price: $22

Current Dividend Yield: 13.3%

Annaly Capital Management (NLY Quick QuoteNLY - Free Report) ) is one of the largest mortgage REITs in the United States, investing primarily in agency mortgage-backed securities that are backed by government-sponsored enterprises. Rather than owning physical properties, Annaly generates income through the spread between borrowing costs and yields earned on its investment portfolio.

As one of the industry's largest mortgage REITs, Annaly has successfully navigated multiple interest-rate cycles while consistently returning capital to shareholders through sizable dividends.

Equally encouraging, analysts have become increasingly optimistic regarding the company's earnings outlook, helping support its favorable Zacks Rank.

Combined with an annual dividend yield comfortably above 10%, NLY offers investors an opportunity to generate significant income while benefiting from improving earnings expectations.

3. Chicago Atlantic Real Estate Finance – REFI

Zacks Rank #2 (Buy)

Stock Price: $10

Current Dividend Yield: 17.6%

Chicago Atlantic Real Estate Finance (REFI Quick QuoteREFI - Free Report) ) operates as a commercial mortgage REIT specializing in senior secured loans to operators throughout the regulated cannabis industry.

Rather than taking equity stakes, REFI primarily originates first-lien loans secured by real estate and operating assets, generating predictable interest income while maintaining a conservative lending structure.

The niche lending strategy has enabled the company to produce attractive cash flows that support one of the highest dividend yields among publicly traded REITs.

With analysts raising earnings estimates and the stock carrying a favorable Zacks Rank, REFI offers investors exposure to a specialized area of commercial real estate finance while collecting an annual yield well into the double digits.

4. NexPoint Real Estate Finance – NREF

Zacks Rank #2 (Buy)

Stock Price: $15

Current Dividend Yield: 12.72%

Rounding out the list is NexPoint Real Estate Finance (NREF Quick QuoteNREF - Free Report) ), a commercial mortgage REIT focused on originating, structuring, and investing in loans backed by multifamily housing, self-storage, single-family rental communities, and select hospitality properties.

NexPoint’s diversified investment portfolio spans both debt and equity investments across several property types, helping reduce concentration risk while producing recurring income.

The company's disciplined underwriting approach and emphasis on higher-quality commercial assets have helped support stable cash generation despite a challenging interest-rate environment.

With earnings estimates trending higher and shares carrying a favorable Zacks Rank, NREF also offers investors one of the most attractive dividend yields in the REIT universe, currently yielding well above 10%.

Conclusion & Strategic Thoughts 

As the Great Wealth Transfer accelerates and younger generations inherit unprecedented levels of wealth, real estate appears poised to remain a core portfolio allocation alongside equities and alternative investments. Family offices and ultra-high-net-worth investors have long appreciated the asset class for its combination of income generation, diversification, and inflation protection, and publicly traded REITs can allow everyday investors to gain similar exposure.

For income-oriented investors, CTO Realty Growth, Annaly Capital Management, Chicago Atlantic Real Estate Finance, and NexPoint Real Estate Finance stand out not only for their annual dividend yields exceeding 7%, but also because their earnings outlooks are improving.

That combination of rising earnings expectations and substantial income potential could make these REITs worth consideration for investors seeking both yield and long-term total return.

For Baby Boomers, REITs can provide a steady stream of retirement income while also serving as assets that can be passed on to future generations, particularly as younger investors show increasing interest in real estate.