Most dividend investors seek solid passive income streams from quality dividend stocks.
At the core, Agree Realty (ADC 0.27%) and Realty Income (O -0.26%) are very similar real estate investment trusts (REITs). But they aren't interchangeable.
My strategy involves buying high-quality, high-yield stocks at discounts, holding until they re-appreciate, and then selling to reinvest in undervalued stocks. I share some of the most attractive, high-quality big dividend stocks available right now. I detail why they are good buys.
Besides Wall Street's top -and-bottom-line estimates for Agree Realty (ADC), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended December 2024.
Net lease REITs like ADC and SILA offer defensive and offensive investment potential through resilient assets, long-term leases, and strong balance sheets. ADC excels with a BBB+ credit rating, low leverage, and $1.2 billion in investable liquidity, positioning it for meaningful growth in 2025. SILA focuses on single-tenant healthcare properties with high rent coverage while enjoying low leverage and a solid balance sheet, offering a 6.4% dividend yield and growth potential.
Many REITs are historically cheap today. Some are cheap for a good reason. Others are just undervalued. I present a good example of that.
There are numerous high-quality, high-yielding stocks that trade at compelling bargains. I share three that have been lagging the S&P 500 so far this year that I think could turn it around and end up crushing the market this year. I detail why I think this will happen.
What I Wish I Knew Before Investing In Dividend Stocks
The ultimate dividend stock should offer a high yield first and foremost, plus growth and a stable business. It should be a stock that you can count on through thick and thin, and that can rise to support the dividend.
There is an often overlooked difference between income investing and dividend growth investing. The two are not the same. Timely charts showing that inflation is even more subdued than the official CPI metrics show, but also what threatens to disrupt the disinflationary trend. A discussion of three books dividend growth investors would benefit from reading. Only one is specifically about dividend growth investing.
I'm still buying Agree Realty's commons despite the REIT selloff, driven by the significant rise in long-term Treasury yields. ADC's strong financials include 12.8% revenue growth, 99.6% leased properties, and an investment-grade tenant base, supporting a 4.3% dividend yield. ADC's prudent debt maturity profile and $2 billion liquidity ensure stability, with no significant refinancing needed while Fed rates remain high.
Joey Agree, president and CEO at Agree Realty, joins CNBC's The Exchange to discuss the rise in risks for commercial properties, recent retail trends, and more.