Agree Realty is a net lease real estate investment trust (REIT). The company's yield is around 4.9% today, and the stock is down around 20% from its 2022 highs.
Stocks generally end up with high yields for a reason, but sometimes that reason is temporary. Bank of Nova Scotia is a major Canadian bank that is working to improve its business.
Agree Realty is a slow and steady dividend grower with an important edge over the net lease sector's most prominent company. Federal Realty has a dividend streak that's unrivaled in the REIT sector, and it is on the rare list of Dividend Kings.
Realty Income is the largest net lease REIT and could be a cornerstone dividend stock for any income portfolio. Agree Realty is a smaller net lease REIT with big growth ambitions.
The commercial real estate market continues to face challenges from elevated interest rates and rising supply. Retail real estate stands out with low vacancy rates, benefiting companies like Realty Income and Agree Realty. Industrial and multifamily sectors face rising vacancies due to increased supply, but leaders like Prologis and Mid-America Apartment Communities show resilience.
Monthly dividends are better for matching expenses and enable faster compounding of returns. In this article, I highlight two REITs that pay monthly dividends that are well covered by FFO. Both carry solid leverage ratios and are demonstrating portfolio strengths in the current economic environment.
REITs are priced at their lowest valuations since 2008. But that does not mean that all REITs are worth buying. Here are three REITs that I would consider selling.
Agree Realty has grown its high-yielding dividend by more than 5% annually for a decade. Extra Space Storage has delivered outsized dividend growth over the years.
There is significant mispricing among triple net REITs due to a lack of consideration for changing the tenant landscape. Net store openings indicate positive occupancy and rental rates, but some REITs are exposed to troubled areas. REITs with exposure to CVS and Walgreens may face challenges with lease expirations, requiring substantial capex and potential revenue disruption.
Agree is a retail REIT focused on resilient companies with omnichannel growth strategies. It recently switched to a monthly dividend payout model.
Today, we are taking a look at two different investment choices for investors looking to grow their passive income. Not only do these two help to bring in passive cash flow, but they also pay monthly and have been growing their dividends over time. Investments that can grow their dividends over time help to provide even further compounding along with fresh capital that might be put to work.
Agree Realty's 5% yield is well above the REIT average of 4.3%. The net-lease REIT is large, but not so large that growth will be slowed by its size.