Here's Why Agree Realty Can Keep Raising Its Dividend
Agree Realty's (NYSE: ADC) stock has been on a roller-coaster ride over the past year, but in the end the price is basically the same as it was 12 months ago. That said, the most recent dividend payment was nearly 6% higher than it was a year earlier, leaving the yield at around 4%. Compared to the S&P 500's average yield of 1.75% and the average real estate investment trust (REIT) of 3.5% (using Vanguard Real Estate Index ETF as a proxy), that's pretty attractive. But it's the dividend-growth opportunity that's probably the most exciting factor here.
Realty Income (NYSE: O) is the bellwether name in the net-lease sector. Net lease means that a real estate investment trust owns a property, but its tenant, usually a single company, is responsible for most of the property-level operating costs (like taxes, insurance, and maintenance). Across a large portfolio, it's actually a pretty low-risk investment approach despite the fact that each property only has one tenant. Realty Income owns over 10,700 properties and has an investment grade-rated balance sheet. The company's dividend yield is 4.7%.
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Source Fool.com
