This 5.5%-Yielding Dividend Stock Is Going Global to Continue Growing
Diversification has been a key focus of Realty Income (NYSE: O) in recent years. The real estate investment trust (REIT) has been broadening its portfolio beyond its core retail focus to include industrial, gaming, data centers, and other properties. It has also expanded its geographic reach beyond the U.S. by moving deeper into Europe.
That diversification strategy is paying dividends. It enables the REIT to find compelling investment opportunities even as it remains highly selective in the current market environment. The REIT's ability to continue growing its portfolio should enable it to keep pushing its high-yielding dividend even higher. With a 5.5% yield and more growth ahead, it's an attractive option for those seeking passive income.
Realty Income invested $598 million into real estate acquisitions and property developments during the first quarter. The REIT invested 54% of that money into the U.K. and Europe. The company will earn a 8.2% initial weighted average cash yield on its international investments. That compares to a 7.8% initial weighted average cash yield on the overall investment volume during the quarter.
Source Fool.com
