Better Buy: Realty Income vs. Store Capital
When it comes to net lease real estate investment trusts (REITs), Realty Income (NYSE: O) is the bellwether name to watch. That, however, doesn't mean that there aren't other names worth looking at in the space. One alternative to consider is Store Capital (NYSE: STOR), which has only been public since 2014 but has been growing rapidly and rewarding investors well along the way. Here's a comparison of these two dividend stocks and five factors to consider to help you figure out if one or the other is the better buy.
The big similarity between Realty Income and Store Capital is their focus on properties where the tenant is responsible for most of the operating costs. Such "net lease" properties tend to be low-risk investments, because the landlord can -- put simply -- just sit back and collect rent. They make the difference between their cost of capital and the rents they charge in profit.
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Source Fool.com
