Better Dividend Stock: NNN REIT vs. Realty Income
Realty Income (NYSE: O) and NNN REIT (NYSE: NNN) are elite dividend stocks. The real estate investment trusts (REITs) have each increased their dividends for at least the last 30 years. They both currently offer dividend yields of around 5.5%, well above the S 500's (SNPINDEX: ^GSPC) yield (1.2%).
The retail-focused REITs share a few other similarities. Because of that, most investors likely would only want to own one of them in their portfolio. Here's a closer look at these elite dividend stocks to see which is better to buy right now.
Realty Income and NNN REIT have very similar business models. The REITs focus on owning freestanding properties secured by long-term net leases. That lease structure requires tenants to cover all of a property's operating costs, including routine maintenance, real estate taxes, and building insurance. Because of that, the REITs generate very low volatility cash flow that tends to rise steadily each year as lease rates escalate.
Source Fool.com
