This High-Yield Dividend Aristocrat Has a Simple Plan for Growth
National Retail Properties (NYSE: NNN) has increased its dividend annually for 32 consecutive years, making it a Dividend Aristocrat. That streak is longer than larger peer Realty Income, which is at "just" 28 years. A fundamental reason why National Retail has managed to outdo so many other real estate investment trusts (REITs) on the dividend front is by keeping its business plans simple. Here's why that matters.
Net lease REITs like National Retail and Realty Income own single-tenant properties. However, their tenants are responsible for most of the operating costs of the assets they occupy. That keeps costs low for the REITs and allows them to focus more time on other aspects of their portfolios, like buying new properties. Moreover, while any individual property is a pretty high risk, given a single tenant, net lease assets that are spread across enough properties are considered fairly low risk. National Retail's portfolio includes nearly 3,200 locations.
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Source Fool.com