If you have $1,000 (or more) to invest today you should tread carefully. The S 500 index is near all-time highs and you want to make sure you own high-quality stocks in case a bear comes along. It would be even better if you could buy a stock that itself wasn't too expensively valued. Add in a big dividend yield and your list of qualifying options narrows significantly.

One stock that does meet those quality, expense, and high-dividend yield criteria is Realty Income (NYSE: O). Here's why this real estate investment trust (REIT) can turn a $1,000 investment into something much more and serve as a cornerstone for your portfolio.

As already noted, Realty Income is a real estate investment trust. It buys single-tenant properties and rents them out using the net lease approach. Net leases require tenants to pay most property-level operating costs. It is a fairly simple approach in the REIT sector and it allows Realty Income to focus more of its attention on growth than on day-to-day operating activities, which are largely taken care of by tenants.

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Source Fool.com