Is It Too Late to Buy Realty Income Stock?
Realty Income (NYSE: O) has trademarked the nickname "The Monthly Dividend Company." One big takeaway from this choice is that the real estate investment trust (REIT) is heavily focused on consistently paying dividends to shareholders. If that sounds like a company you'd like to own, there's still time to buy it even though the stock has rallied of late.
Before getting into a valuation discussion, it is important to understand Realty Income's business. It is a property-owning REIT, but it uses a net-lease approach. Net leases require tenants to pay most property-level operations costs. That protects the REIT from inflation to a large degree. And while virtually all of Realty Income's properties are single tenant, making any individual property a high risk, across a large portfolio the net-lease approach is fairly low risk. Realty Income owns over 13,200 properties.
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Source Fool.com
