Investors are growing weary of share price weakness in REITs, particularly Realty Income. Despite negativity, Realty Income's historical value remains strong with a unique upside potential. NNN REIT offers a beaten-down blue-chip alternative with speculative upside and potential for M&A premium.
Realty Income is the largest net lease REIT by a mile and offers a historically high yield today. NNN REIT's dividend streak is actually more impressive than that of Realty Income, and its yield is a full percentage point higher than the REIT average.
British American Tobacco has a massive 9.5% dividend yield, but there's a big fundamental problem with the company. Realty Income's dividend yield is roughly 6%.
Dividend stocks have a knack for running circles around non-payers over the long run. An industry-leading real estate investment trust (REIT), which has raised its payout for 107 consecutive quarters, has reached a 6% yield and is primed to be bought by opportunistic investors.
O pays a well-covered monthly dividend of $0.26/share, currently yielding 5.9%. Its portfolio is well-diversified both geographically and based on the property-type, with a resilient tenant base and 98.6% occupancy. The yield, forecast AFFO growth, and the possibility of lower interest rates have created an interesting opportunity for income/value investors.
Since early 2020, REIT market has been lagging behind the S&P 500. The gap has widened after the Fed initiated interest rate hiking cycle. The depressed multiples in the REIT space create opportunities.
Realty Income is a diverse REIT with a focus on retail, industrial, and gaming properties, with a strong presence in the US and UK markets. The company has seen significant revenue and profitability growth, with increased dividends and raised guidance for 2024, indicating positive performance. Valuation metrics suggest that Realty Income is fairly valued compared to similar firms, with potential for future value creation through continued investments.
Realty Income stock returned 1.6% to investors since March, with monthly dividend hikes in June and May. Management boosted earnings guidance for 2024 and announced aggressive investment increase, maintaining low risks. Valuation analysis shows a 19% undervaluation, with fair value estimated at $62.4 and attractive P/AFFO ratio.
Realty Income is a robust dividend stock. Dividends can produce market-beating total returns over time.
Starbucks disappointed investors with its first quarter results, but it is mainly affected by temporary headwinds. Realty Income has been hit hard by rising interest rates but is a solid business with a long-term history of outperformance.
Realty Income pays a high yield and looks historically cheap. The REIT's valuation is being squeezed by high interest rates.
Realty Income generates growing income in any environment and is still trading below its pre-pandemic high. Prologis is the largest REIT in the world and has a ton of rent growth that is yet to be reflected in the numbers.