Better Buy: Federal Realty Investment Trust vs. Realty Income
Federal Realty Investment Trust (NYSE: FRT) and Realty Income (NYSE: O) have a lot in common that commends them to investors as long-term buy and holds.
They're both real estate investment trusts (REITs), which requires that pay at least 90% of their taxable income to shareholders. They generate that income from their commercial real estate portfolios, counting on their tenants to provide real estate investors with a steady flow of cash and share price appreciation over a period of years.
Notice I said years. What makes Federal Realty and Realty Income such compelling choices is their venerability matched by performance. Both are Dividend Aristocrats, which means they're among the 65 members of the Standard & Poor's 500 that have raised dividends for 25 straight years or more. Federal Realty goes a step further. It's one of the 31 companies meriting the title of Dividend King bestowed for 50 straight years of payout increases.
Source Fool.com
