Beat the Nasdaq? This Dividend Stock Has Actually Done It
Real estate investment trusts, or REITs, are generally not thought of as the most exciting businesses, and to be fair, they aren't. Consider Realty Income (NYSE: O), one of the largest and oldest REITs in the market. The company owns a portfolio of single-tenant properties that it leases out to tenants on long-term, triple-net leases. Not exactly in the same league excitement-wise as a cloud infrastructure or AI company, is it?
However, it's a common misconception that a "boring" business can't produce market-beating returns for investors over the long run. Realty Income has done it and with far less volatility than the typical S 500 or stock.
If you aren't familiar, here's the quick explanation of Realty Income's business. The company owns a portfolio of more than 13,100 commercial properties, most of which are occupied by a single tenant. About three-quarters of the company's rental Income comes from retail tenants, and there are also industrial, agricultural, and gaming properties in the REIT's portfolio (Realty Income just purchased a stake in the Bellagio in Las Vegas, for example). Its properties are located in all 50 states as well as in several European countries.
Source Fool.com
