Realty Income's Third-Largest Customer Is Closing 1,000 Locations. Should Investors Be Worried?
One of the most lucrative sources of dividend income is real estate investment trusts (REIT). Realty Income (NYSE: O) is a retail REIT that leases space to brick-and-mortar stores.
The company has a generous history of raising its dividend -- certainly a nice characteristic for anyone looking for passive income. However, one of Realty income's largest customers appears to be in some trouble.
Dollar Tree is Realty Income's third-largest tenant, and the cost-conscious retailer announced last week that it plans to close 1,000 locations. Not only could this spell trouble for Realty Income, but should investors be worried about the sustainability of its dividend?
Source Fool.com
