Latest news with #AgreeRealty
Yahoo
4 days ago
- Business
- Yahoo
Best Stock to Buy Right Now: Realty Income vs. Agree Realty
Realty Income is a net lease REIT with a lofty 5.8% dividend yield. Agree Realty is a net lease REIT with a roughly 4.1% yield. Realty Income wins on yield but falls short of Agree Realty on this key metric. 10 stocks we like better than Realty Income › The S&P 500 (SNPINDEX: ^GSPC) is offering a tiny 1.3% yield today. The average real estate investment trust (REIT) has a yield of around 4.1%. That's the backdrop for investors considering between net lease REIT Agree Realty (NYSE: ADC) and its average 4.1% yield, and Realty Income (NYSE: O) and its above-average 5.8% yield. But there's more than yield to examine in this matchup. At the core of the business models followed by Agree Realty and Realty Income are net lease properties. Generally speaking, these assets are occupied by a single tenant, who is responsible for most property-level operating costs. This gives the tenant effective control over the asset they occupy, and reduces the risk for the landlord, since the property owner doesn't have to deal with the costs and effort of maintaining the asset. Although any single property is high risk, because there's just one tenant, over a large-enough portfolio, that risk is well mitigated. Realty Income is the largest net lease REIT with more than 15,600 properties. Agree Realty is a smaller REIT, but still has a significant portfolio with roughly 2,400 properties. But size isn't the only difference between these two portfolios. Agree is focused on owning retail assets in the United States. Realty Income's portfolio is roughly 75% retail, with industrial and "other" assets rounding the portfolio out to 100%. In the "other" category are things like vineyards, casinos, and data centers. It has a far more diversified portfolio, noting that it also has investments in several European countries. Given how much larger Realty Income is than Agree, it simply takes more transaction volume to move the needle on the top and bottom lines. The REIT's diversification helps ensure that it has more levers to pull when it comes to making new investments. From a business fundamentals perspective, Agree is small and focused on growing its core, while Realty Income is larger and more diversified. That has translated into very different valuations, which is, perhaps, appropriate. As noted, Agree Realty's dividend yield is 4.1% or so, right in line with the REIT industry average. Given the higher 5.8% yield on offer from Realty Income, it is pretty clear that investors are affording Agree Realty a premium price. It is worth highlighting that Realty Income, given its large size, is considered a bellwether in the net lease space. If you are looking to maximize the income your portfolio generates, then Realty Income will be the obvious choice here. However, that comes at a cost. That cost is growth. Agree Realty is projecting adjusted funds from operations (FFO) growth of 3.6% at the midpoint of its 2025 guidance. At the high point of Realty Income's guidance, it will only grow adjusted FFO by 2.1% or so. If you prefer to own a REIT that's growing more quickly, the better choice is Agree Realty. There's a secondary impact on the growth front. Realty Income's dividend has increased around 4.3% a year, on average, over the past 30 years. That's not bad, but if adjusted FFO is only expected to grow by 2% or so, investors should expect notably lower dividend increases over the near term. Agree Realty, on the other hand, has a bit more room to increase its dividend. And on that front, it has increased its dividend by around 5.5% a year, on average, over the past decade. Again, the near-term increases might fall below that figure, but they are still likely to be above the dividend growth on offer from Realty Income. So if you lean toward faster-growing dividends, Agree will win. At the end of the day, both Realty Income and Agree Realty are well run, financially strong net lease REITs. Dividend investors probably wouldn't be making a mistake with either one. However, they aren't interchangeable. If you are looking for yield and/or diversification, then Realty Income is the likely winner here. If you prefer faster-growing businesses and dividends, you'll probably prefer Agree Realty. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy. Best Stock to Buy Right Now: Realty Income vs. Agree Realty was originally published by The Motley Fool
Globe and Mail
4 days ago
- Business
- Globe and Mail
Best Stock to Buy Right Now: Realty Income vs. Agree Realty
The S&P 500 (SNPINDEX: ^GSPC) is offering a tiny 1.3% yield today. The average real estate investment trust (REIT) has a yield of around 4.1%. That's the backdrop for investors considering between net lease REIT Agree Realty (NYSE: ADC) and its average 4.1% yield, and Realty Income (NYSE: O) and its above-average 5.8% yield. But there's more than yield to examine in this matchup. What do Agree Realty and Realty Income do? At the core of the business models followed by Agree Realty and Realty Income are net lease properties. Generally speaking, these assets are occupied by a single tenant, who is responsible for most property-level operating costs. This gives the tenant effective control over the asset they occupy, and reduces the risk for the landlord, since the property owner doesn't have to deal with the costs and effort of maintaining the asset. Although any single property is high risk, because there's just one tenant, over a large-enough portfolio, that risk is well mitigated. Realty Income is the largest net lease REIT with more than 15,600 properties. Agree Realty is a smaller REIT, but still has a significant portfolio with roughly 2,400 properties. But size isn't the only difference between these two portfolios. Agree is focused on owning retail assets in the United States. Realty Income's portfolio is roughly 75% retail, with industrial and "other" assets rounding the portfolio out to 100%. In the "other" category are things like vineyards, casinos, and data centers. It has a far more diversified portfolio, noting that it also has investments in several European countries. Given how much larger Realty Income is than Agree, it simply takes more transaction volume to move the needle on the top and bottom lines. The REIT's diversification helps ensure that it has more levers to pull when it comes to making new investments. From a business fundamentals perspective, Agree is small and focused on growing its core, while Realty Income is larger and more diversified. That has translated into very different valuations, which is, perhaps, appropriate. Dividend yield or dividend growth? As noted, Agree Realty's dividend yield is 4.1% or so, right in line with the REIT industry average. Given the higher 5.8% yield on offer from Realty Income, it is pretty clear that investors are affording Agree Realty a premium price. It is worth highlighting that Realty Income, given its large size, is considered a bellwether in the net lease space. If you are looking to maximize the income your portfolio generates, then Realty Income will be the obvious choice here. However, that comes at a cost. That cost is growth. Agree Realty is projecting adjusted funds from operations (FFO) growth of 3.6% at the midpoint of its 2025 guidance. At the high point of Realty Income's guidance, it will only grow adjusted FFO by 2.1% or so. If you prefer to own a REIT that's growing more quickly, the better choice is Agree Realty. There's a secondary impact on the growth front. Realty Income's dividend has increased around 4.3% a year, on average, over the past 30 years. That's not bad, but if adjusted FFO is only expected to grow by 2% or so, investors should expect notably lower dividend increases over the near term. Agree Realty, on the other hand, has a bit more room to increase its dividend. And on that front, it has increased its dividend by around 5.5% a year, on average, over the past decade. Again, the near-term increases might fall below that figure, but they are still likely to be above the dividend growth on offer from Realty Income. So if you lean toward faster-growing dividends, Agree will win. What are you trying to achieve? At the end of the day, both Realty Income and Agree Realty are well run, financially strong net lease REITs. Dividend investors probably wouldn't be making a mistake with either one. However, they aren't interchangeable. If you are looking for yield and/or diversification, then Realty Income is the likely winner here. If you prefer faster-growing businesses and dividends, you'll probably prefer Agree Realty. Should you invest $1,000 in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
13-05-2025
- Business
- Yahoo
1 Top Dividend Stock to Buy Without Hesitation for a Lifetime of Passive Income
Realty Income has strategically diversified its portfolio over the years. This strategy has reduced risk. It has also enhanced its ability to continue growing its portfolio, earnings, and dividend. 10 stocks we like better than Realty Income › Realty Income (NYSE: O) has been a very reliable investment in its 30 years as a public company. The real estate investment trust (REIT) has delivered positive earnings growth in 29 of those 30 years. Meanwhile, it has increased its dividend every single year. "Our ability to deliver reliable performance through varying market conditions remains a hallmark of our platform," stated CEO Sumit Roy on the REIT's first-quarter earnings conference call. It has strategically focused on building a more durable business over the years. Because of that, it's one dividend stock that investors can confidently buy and hold for a lifetime of passive income. Realty Income started as a REIT focused on investing in freestanding net-lease retail properties in the U.S. That property type and lease structure tend to produce very stable rental income because the tenant covers all of a property's operating expenses, including routine maintenance, real estate taxes, and building insurance. As a result, retail REITs focused on single-tenant, net-lease real estate tend to be excellent dividend stocks. For example, NNN REIT has increased its dividend for 35 straight years, while Agree Realty has grown its payout at a 5.5% compound annual rate over the past decade. Whereas most of its peers have chosen to stay focused on freestanding U.S. net-lease retail properties, Realty Income has instead "strategically diversified our business model across client types, asset classes, and geographies," stated Roy on the call. The company began diversifying its portfolio in 2011 when it acquired $70 million of industrial properties leased to FedEx. Today, it has investments across $9.7 billion of U.S. net-lease industrial properties. The REIT has also expanded internationally, first to the U.K. in 2019 and then to other European countries in 2021. It currently owns $9.6 billion of properties in the U.K. (including $4.8 billion of retail multitenant, net-lease assets) and another $2 billion in Europe (including $400 million of retail multitenant, net-lease assets). Realty Income has also expanded into gaming ($2 billion), data centers ($300 million), and credit investments ($1.7 billion). The company's "diversification and quality of our portfolio, combined with our proven stability as an operator, position us to navigate potential external pressures effectively, as we have consistently done," stated Roy on the call. That's evident in the fact that it has delivered positive earnings growth in all but one year in its three decades as a public company. Realty Income could have remained focused on the U.S. freestanding retail sectors like its peers. There's plenty of room for these REITs to coexist, given the massive size of the investment market (an estimated $2.6 trillion). However, by diversifying its portfolio, Realty Income has lowered its risk profile while expanding its investment opportunity set. For example, the U.S. industrial net-lease real estate market is worth an estimated $2 trillion. Meanwhile, Europe has an estimated $8.5 trillion of real estate suitable for net leases. On top of that, the U.S. gaming and U.S. data center investment markets are worth $400 billion and $500 billion, respectively. Add it up, and that's a $14 trillion total addressable market opportunity for the REIT. Realty Income's diversification enables it to focus its investment activity where it sees the most compelling opportunities. During the first quarter, that was in Europe. About 65% of its investment volume was in Europe, where it earned a higher initial cash yield of 7% on new investments (compared to 6.9% for acquisitions in the U.S.). Another notable investment during the quarter was a credit investment in the U.S. data center sector. It invested $200 million into a loan for a data center development project with an initial yield of 10.2%. In addition to that attractive yield, the company made the investment in hopes that "this will lead to the ultimate ownership or a path to ownership of these assets," commented Roy on the call. By strategically diversifying its portfolio, Realty Income has reduced risk and enhanced its ability to grow its earnings and dividend in the future. Those features make it an even more appealing long-term investment. Realty Income continues to be a very reliable dividend stock. The REIT has strategically built a more durable portfolio over the years, which positions it to continue generating stable income. Meanwhile, its diversification strategy has enhanced its ability to grow. These features help make it a dividend stock you can confidently buy and hold for a durable passive income stream that could last your lifetime. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor's total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Matt DiLallo has positions in FedEx and Realty Income. The Motley Fool has positions in and recommends FedEx and Realty Income. The Motley Fool has a disclosure policy. 1 Top Dividend Stock to Buy Without Hesitation for a Lifetime of Passive Income was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-05-2025
- Business
- Yahoo
3 High-Yield Dividend Stocks to Buy in May to Collect Passive Income Every Month
Agree Realty has grown its 4%-yielding dividend at a 5.5% compound annual rate over the past decade. EPR Properties can grow its more than 7%-yielding payout by around 3% to 4% annually. Stag Industrial has increased its 4.5%-yielding monthly dividend every year since it went public in 2011. Most dividend stocks make quarterly payments. That can make it a bit challenging for those seeking regular passive income to help cover their monthly expenses. You'd need to buy dividend stocks with staggered payment schedules to help align your income with your monthly bills. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » A much easier option is to invest in monthly dividend stocks. Several companies, most notably real estate investment trusts (REITs), pay their dividends each month, including Agree Realty (NYSE: ADC), EPR Properties (NYSE: EPR), and Stag Industrial (NYSE: STAG). That trio currently has higher-yielding dividends, making them ideal stocks to buy this May to start collecting passive income each month. Agree Realty's dividend yield is right around 4%. That's more than double the dividend yield of the S&P 500, which stands at less than 1.5%. At that rate, every $1,000 invested in the REIT would yield approximately $3.33 in dividend income each month, or roughly $40 per year. The REIT owns a portfolio of retail properties that produces very stable income. It invests in single-tenant properties secured by net leases or ground leases, accounting, respectively, for 89.4% and 10.6% of its annual base rent. Agree Realty partners with financially strong retailers in resilient sectors -- think grocery stores, home improvement centers, and tire and auto service locations -- with 68.3% having investment-grade credit ratings. Agree Realty has a low dividend payout ratio for a REIT, at 72% of its adjusted funds from operations (FFO) last quarter. That enables it to retain lots of cash to invest in additional income-generating retail properties. The REIT also has a conservative balance sheet, enhancing its ability to continue expanding its portfolio. The company's growing portfolio supports a steadily rising dividend, with a 5.5% compound annual dividend growth over the past decade. EPR Properties has a higher dividend yield at more than 7%. The REIT focuses on owning experiential properties, such as movie theaters, eat-and-play venues, and attractions. It leases these properties back to operating companies, typically under long-term net leases. The company generates plenty of cash to cover that high-yielding payout. It expects its payout ratio to be between 69% and 72% of its FFO as adjusted this year. That gives it a decent cushion while enabling it to retain cash to fund new experiential real estate investments. EPR Properties currently has enough internal funding capacity to invest $200 million to $300 million each year. That investment level will support about 3% to 4% annual FFO per share growth and a similar yearly rise in its dividend. Stag Industrial's monthly dividend yields 4.5%. The company backs that payout with a diversified industrial real estate portfolio. It signs long-term leases that escalate rents at a low single-digit rate, enabling the REIT to collect a steadily rising income stream. The industrial REIT has a 74% dividend payout ratio. That enables it to generate about $95 million in annual free cash flow after paying dividends, which it uses to help fund new investments. The REIT also has a solid balance sheet, giving it additional financial flexibility. Stag Industrial typically invests a few hundred million dollars in expanding its portfolio each year, with $350 million to $550 million planned for this year. It tends to target properties with value-add upside potential from releasing at a higher rate as legacy contracts expire or completing expansion projects at the site. These investments yield higher returns, contributing to the REIT's growth. The combination of rental increases and value-enhancing acquisitions has enabled Stag Industrial to increase its dividend every year since it went public in 2011. Agree Realty, EPR Properties, and Stag Industrial all pay higher-yielding monthly dividends backed by income-generating real estate portfolios. The REITs produce more than enough cash flow to cover their payouts, enabling them to invest the excess in expanding their portfolios. That helps grow their rental income, which allows them to increase their monthly dividends. Their combination of yield, growth, and monthly payment schedule makes them ideal dividend stocks to buy for passive income this month. Before you buy stock in EPR Properties, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and EPR Properties wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $701,781!* Now, it's worth noting Stock Advisor's total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Matt DiLallo has positions in EPR Properties and Stag Industrial. The Motley Fool recommends EPR Properties and Stag Industrial. The Motley Fool has a disclosure policy. 3 High-Yield Dividend Stocks to Buy in May to Collect Passive Income Every Month was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
28-04-2025
- Automotive
- Yahoo
Why Agree Realty, LCI Industries, And Allete Are Winners For Passive Income
Companies with a long history of paying dividends and consistently hiking them remain appealing to income-focused investors. Agree Realty, LCI Industries, and Allete have rewarded shareholders for years and recently announced dividend increases. These companies currently offer dividend yields of up to nearly 6%. Agree Realty Agree Realty (NYSE:ADC) is a real estate investment trust that acquires and develops properties net leased to industry-leading, omnichannel retail tenants. Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Can you guess how many retire with a $5,000,000 nest egg? . Agree Realty has increased its dividends consecutively for the last 12 years. In its most recent dividend announcement on April 10, it raised the monthly payout from $0.253 to $0.256 per share, equal to an annual figure of $3.072 per share. The dividend yield on the stock currently stands at 3.88%. Agree Realty's annual revenue as of Dec. 31 stood at $617.10 million. According to its Q1 2025 earnings release on April 22, the company posted revenues of $169.16 million and AFFO of $1.06. Both figures came in above the consensus estimates. If you invested $10,000 in Agree Realty stock 10 years ago, how much would you have now? Check out this article by Benzinga to learn more. Trending: The secret weapon in billionaire investor portfolios that you almost certainly don't own yet. LCI Industries LCI Industries (NYSE:LCII) manufactures and supplies engineered components for the manufacturers of recreational vehicles and adjacent industries in the U.S. and internationally. LCI Industries has increased dividends every year for the last nine years. According to its most recent dividend hike announcement on Nov. 14, 2024, the company's board raised the quarterly payout from $1.05 to $1.15 per share, equal to an annual figure of $4.60 per share. More recently, in its dividend announcement on Feb. 19, the company maintained the payout at the same level. The current dividend yield on the stock is 5.83%. The company's annual revenue as of Dec. 31 stood at $3.74 billion. In its Q4 2024 earnings release on Feb. 11, it posted revenues of $803.14 million and EPS of $0.37, both above the consensus Allete (NYSE:ALE) operates as an energy company in two segments, Regulated Operations and Allete Clean Energy. It generates electricity from coal-fired, biomass co-fired/natural gas, hydro, wind, and solar. The company has raised its dividends every year for the last 14 years. As per its most recent dividend hike announcement on Jan. 30, its board increased the quarterly payout by 3.5% to $0.73, equaling an annual figure of $2.92 per share. The current dividend yield is 4.48%. ALLETE's annual revenue as of Dec. 31 stood at $1.53 billion. In its most recent earnings report on Feb. 13, the company posted Q4 2024 revenues of $364.80 million and EPS of $0.87. Both figures missed consensus estimates. Agree Realty, LCI Industries, and Allete are good choices for investors seeking reliable passive income. Their dividend yields of up to nearly 6% and long history of consistent hikes make them attractive to income-focused investors. Check out this article by Benzinga for three more stocks offering high dividend yields. Read Next:Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Why Agree Realty, LCI Industries, And Allete Are Winners For Passive Income originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
