Latest news with #RealtyIncome
Yahoo
12 hours ago
- Business
- Yahoo
5 Reasons to Buy Realty Income Stock Right Now
Realty Income is a large and diversified net-lease real estate investment trust (REIT). The REIT has an above-average yield. Realty Income has a long track record of putting investors first. 10 stocks we like better than Realty Income › Realty Income (NYSE: O) is a foundational stock that can be the backbone of a diversified dividend portfolio. Most income-focused investors should at least consider adding it to their holdings. Here's a look at five key reasons right now is the time to buy this real estate investment trust (REIT). The S&P 500 index (SNPINDEX: ^GSPC) is yielding about 1.3% today. The average REIT has a yield of 4.1%. Realty Income's dividend yield is roughly 5.7%. Very clearly, it is providing investors with more income than many other options. That said, its yield is also toward the high end of its range during the past decade. It not only looks attractive relative to other options, but the REIT's yield also looks attractive relative to its own history. Just having a high yield isn't enough to make a dividend stock a buy. Sometimes a high yield is a sign that the dividend isn't sustainable. But when it comes to providing investors with a sustainable and growing dividend, Realty Income looks like a winner. It has increased its payout annually for three decades and counting. Within that streak is a run of 110 quarterly increases. This is a business that is designed to reward investors with reliable dividend growth. To be fair, the average annualized increase of the past 30 years was a modest 4% or so. That, however, is just slightly faster than the historical rate of inflation, which means the buying power of its payout is increasing over time. The company's property focus is on single-tenant net lease assets. A net lease requires the tenant to pay for most property-level operating costs. While any single property is high risk, since there's only one tenant, Realty Income owns 15,600 properties. The risk here is low because most tenants keep paying rent. Realty Income isn't the just the biggest in this niche, it is also highly diversified. Roughly 75% of its rents come from retail properties, with the remainder in industrial assets and a broad "other" category. (More on that below.) Unlike many of its peers, however, Realty Income isn't confined to the U.S. It has expanded into Europe, where the net lease model is still underutilized. Its giant portfolio and broad reach work together to support slow and steady dividend growth, because the REIT can take on deals that its peers couldn't manage. That includes large portfolio transactions and acting as an industry consolidator. Being able to absorb large deals is more than just a size issue. It also requires access to capital. Luckily, being a large company makes it easier to sell stock and debt. So Realty Income has an advantage on that front, too. But it doesn't take that for granted; it has worked to ensure it has an investment-grade balance sheet. That way, when it does go to the markets looking for cash, buyers provide it with attractive terms. An attractive cost of capital lets Realty Income bid aggressively for new properties while still being able to make a healthy profit. The "other" category noted above is important. It includes assets like casinos and data centers, where the REIT is starting to explore new investments. Management is also starting to include loans in its mix and is beginning to provide net-lease asset management services to institutional investors. These are all additional irons in the fire to support long-term growth. But the really exciting aspect here is that Realty Income is being innovative and experimenting with new investments. It is using what it does well -- net leases -- and expanding in new ways. To some extent, its size requires this approach, given that it takes more to move the needle on the top and bottom line as a company grow larger. But still, the fact that Realty Income is steadily working to maintain its dominance is a sign of management strength. And it helps set up the company and its investors for future dividend increases. This list started with dividend yield, and it will end with dividend yield because that's what income investors are looking for. But as noted, having a high yield, like Realty Income does, isn't enough to make a stock a buy. Reasons Nos. 2 through 5 help cement the deal, with this entrenched industry giant offering a value proposition that few can match. Right now is a good time to buy if you are looking to add an attractive dividend stock to your portfolio. 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — 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 June 2, 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. 5 Reasons to Buy Realty Income Stock Right Now 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
2 days ago
- Business
- Yahoo
1 Top Dividend Growth Stock to Buy Right Now
Dividends can be an ideal way to generate passive income, no matter what is happening in the economy. Realty Income is an excellent pick because of its high yield and potential for long-term dividend increases. 10 stocks we like better than Realty Income › For many investors, dividends can become a realistic source of income after retirement. For example, if you owned $1 million worth of Realty Income (NYSE: O) at its current yield of 5.7%, you would generate $4,750 per month or $57,000 in cash every year without having to work. That's significantly more than the U.S. median income of $42,220. To be fair, most Americans don't have $1 million in cash lying around. However, accumulating this amount of money is very doable over the long term. The key is starting early and taking advantage of the power of aggressive saving and compounding interest. Let's explore why Realty Income could be an excellent addition to a balanced investment portfolio. It can be tempting to pour money into the most exciting asset classes like cryptocurrencies, leveraged exchange-traded funds (ETFs), or penny stocks. However, the losses from these high-risk strategies can often overshadow the gains, leading to a lower-than-expected long-term return. Real estate investment trusts (REITs) operate under a completely different value proposition: Slow and steady wins the race. Realty Income is the quintessential example of how this works. Since its listing on the New York Stock Exchange in 1994, the company has generated a compound annual total return of 13.6% through a combination of dividend payouts and growth in its stock price. Returns have been around 4x higher than the S&P 500 index, which tracks a basket of leading stocks. The economy is notoriously unpredictable, especially over the long term. While dominant companies like Apple, Google, and Netflix look unbeatable today, investors don't know if they will become the IBM, Blockbuster, or General Electric of the future. That said, when it comes to consumer-facing real estate, investors can sleep a little easier. Real estate has a strong economic moat because it offers one of the key inputs other businesses need to survive. If a record store goes under, it can be replaced by a Blockbuster. And when that goes bankrupt, it can be replaced by an H&R Block office. Realty Income builds upon the industry's natural advantages by focusing on clients that supply consumer staple goods that will remain in demand no matter what is happening in the economy. Top clients include grocery stores, convenience stores, and dollar stores, which sell low-cost, necessary items like food and toiletries. Realty Income boasts a remarkably high occupancy rate of 98.5%, which speaks to the quality of its tenants. It boosts safety even further by using net lease agreements, where the tenant is responsible for many of the property's operating expenses, like taxes, maintenance, and insurance. With a combination of safety, longevity, and a high yield, Realty Income is an excellent pick for investors who want sustainable long-term income and peace of mind in the stock market. But the icing on the cake comes from the company's growth potential. While Realty Income is already a $50 billion company, it still has plenty of room for expansion in the $22.5 trillion U.S. commercial real estate market. Management is also targeting international opportunities in continental Europe and the United Kingdom, where it serves household names such as the well-known supermarket chains Sainsbury's and ASDA. Historically, Realty Income has grown its dividend payout by an average of 4.3% annually since its listing in 1994. It looks capable of maintaining this track record for decades into the future. 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — 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 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Will Ebiefung has positions in Realty Income. The Motley Fool has positions in and recommends Alphabet, Apple, International Business Machines, Netflix, and Realty Income. The Motley Fool recommends J Sainsbury Plc. The Motley Fool has a disclosure policy. 1 Top Dividend Growth Stock to Buy Right Now was originally published by The Motley Fool
Globe and Mail
2 days ago
- Business
- Globe and Mail
1 Top Dividend Growth Stock to Buy Right Now
For many investors, dividends can become a realistic source of income after retirement. For example, if you owned $1 million worth of Realty Income (NYSE: O) at its current yield of 5.7%, you would generate $4,750 per month or $57,000 in cash every year without having to work. That's significantly more than the U.S. median income of $42,220. To be fair, most Americans don't have $1 million in cash lying around. However, accumulating this amount of money is very doable over the long term. The key is starting early and taking advantage of the power of aggressive saving and compounding interest. 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 » Let's explore why Realty Income could be an excellent addition to a balanced investment portfolio. Slow and steady wins the race It can be tempting to pour money into the most exciting asset classes like cryptocurrencies, leveraged exchange-traded funds (ETFs), or penny stocks. However, the losses from these high-risk strategies can often overshadow the gains, leading to a lower-than-expected long-term return. Real estate investment trusts (REITs) operate under a completely different value proposition: Slow and steady wins the race. Realty Income is the quintessential example of how this works. Since its listing on the New York Stock Exchange in 1994, the company has generated a compound annual total return of 13.6% through a combination of dividend payouts and growth in its stock price. Returns have been around 4x higher than the S&P 500 index, which tracks a basket of leading stocks. O Total Return Level data by YCharts. A diversified and stable portfolio The economy is notoriously unpredictable, especially over the long term. While dominant companies like Apple, Google, and Netflix look unbeatable today, investors don't know if they will become the IBM, Blockbuster, or General Electric of the future. That said, when it comes to consumer-facing real estate, investors can sleep a little easier. Real estate has a strong economic moat because it offers one of the key inputs other businesses need to survive. If a record store goes under, it can be replaced by a Blockbuster. And when that goes bankrupt, it can be replaced by an H&R Block office. Realty Income builds upon the industry's natural advantages by focusing on clients that supply consumer staple goods that will remain in demand no matter what is happening in the economy. Top clients include grocery stores, convenience stores, and dollar stores, which sell low-cost, necessary items like food and toiletries. Realty Income boasts a remarkably high occupancy rate of 98.5%, which speaks to the quality of its tenants. It boosts safety even further by using net lease agreements, where the tenant is responsible for many of the property's operating expenses, like taxes, maintenance, and insurance. Realty Income is a strong buy With a combination of safety, longevity, and a high yield, Realty Income is an excellent pick for investors who want sustainable long-term income and peace of mind in the stock market. But the icing on the cake comes from the company's growth potential. While Realty Income is already a $50 billion company, it still has plenty of room for expansion in the $22.5 trillion U.S. commercial real estate market. Management is also targeting international opportunities in continental Europe and the United Kingdom, where it serves household names such as the well-known supermarket chains Sainsbury's and ASDA. Historically, Realty Income has grown its dividend payout by an average of 4.3% annually since its listing in 1994. It looks capable of maintaining this track record for decades into the future. 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — 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
2 days ago
- Business
- Yahoo
1 Top Dividend Growth Stock to Buy Right Now
Dividends can be an ideal way to generate passive income, no matter what is happening in the economy. Realty Income is an excellent pick because of its high yield and potential for long-term dividend increases. 10 stocks we like better than Realty Income › For many investors, dividends can become a realistic source of income after retirement. For example, if you owned $1 million worth of Realty Income (NYSE: O) at its current yield of 5.7%, you would generate $4,750 per month or $57,000 in cash every year without having to work. That's significantly more than the U.S. median income of $42,220. To be fair, most Americans don't have $1 million in cash lying around. However, accumulating this amount of money is very doable over the long term. The key is starting early and taking advantage of the power of aggressive saving and compounding interest. Let's explore why Realty Income could be an excellent addition to a balanced investment portfolio. It can be tempting to pour money into the most exciting asset classes like cryptocurrencies, leveraged exchange-traded funds (ETFs), or penny stocks. However, the losses from these high-risk strategies can often overshadow the gains, leading to a lower-than-expected long-term return. Real estate investment trusts (REITs) operate under a completely different value proposition: Slow and steady wins the race. Realty Income is the quintessential example of how this works. Since its listing on the New York Stock Exchange in 1994, the company has generated a compound annual total return of 13.6% through a combination of dividend payouts and growth in its stock price. Returns have been around 4x higher than the S&P 500 index, which tracks a basket of leading stocks. The economy is notoriously unpredictable, especially over the long term. While dominant companies like Apple, Google, and Netflix look unbeatable today, investors don't know if they will become the IBM, Blockbuster, or General Electric of the future. That said, when it comes to consumer-facing real estate, investors can sleep a little easier. Real estate has a strong economic moat because it offers one of the key inputs other businesses need to survive. If a record store goes under, it can be replaced by a Blockbuster. And when that goes bankrupt, it can be replaced by an H&R Block office. Realty Income builds upon the industry's natural advantages by focusing on clients that supply consumer staple goods that will remain in demand no matter what is happening in the economy. Top clients include grocery stores, convenience stores, and dollar stores, which sell low-cost, necessary items like food and toiletries. Realty Income boasts a remarkably high occupancy rate of 98.5%, which speaks to the quality of its tenants. It boosts safety even further by using net lease agreements, where the tenant is responsible for many of the property's operating expenses, like taxes, maintenance, and insurance. With a combination of safety, longevity, and a high yield, Realty Income is an excellent pick for investors who want sustainable long-term income and peace of mind in the stock market. But the icing on the cake comes from the company's growth potential. While Realty Income is already a $50 billion company, it still has plenty of room for expansion in the $22.5 trillion U.S. commercial real estate market. Management is also targeting international opportunities in continental Europe and the United Kingdom, where it serves household names such as the well-known supermarket chains Sainsbury's and ASDA. Historically, Realty Income has grown its dividend payout by an average of 4.3% annually since its listing in 1994. It looks capable of maintaining this track record for decades into the future. 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — 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 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Will Ebiefung has positions in Realty Income. The Motley Fool has positions in and recommends Alphabet, Apple, International Business Machines, Netflix, and Realty Income. The Motley Fool recommends J Sainsbury Plc. The Motley Fool has a disclosure policy. 1 Top Dividend Growth Stock to Buy Right Now was originally published by The Motley Fool
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
