Realty Income Is the King of This $13.9 Trillion Market Opportunity. Time to Buy the Stock?
It's been a tough period for real estate, but that could now spell opportunity. Consider one of the sector's behemoths: Realty Income (NYSE: O). Its 5.7% or so dividend yield is near 10-year highs, suggesting this industry-leading real estate investment trust (REIT) is on sale.
That's great news for investors, because management estimates that there's still a huge opportunity for growth ahead. Here's what the opportunity looks like, and why -- despite being the net-lease REIT sector's 800 lb. gorilla -- Realty Income's future remains bright.
To give the naysayers their due, Realty Income is not going to be a fast-growing REIT. It hasn't been a fast-growing REIT for a long time, actually, with management focusing on a conservative approach that favors consistency over growth. Notably, the company has trademarked the nickname "The Monthly Dividend Company." While that speaks to the frequency of its Dividend payment, it also puts front and center the importance of the Dividend. Aggressive growth just isn't the goal here.
Source Fool.com
