This Magnificent Dividend Stock Made a Small, Under-the-Radar Investment That Will Unlock a $500 Billion Growth Opportunity
Realty Income (NYSE: O) has done a magnificent job growing its dividend over the years. The real estate investment trust (REIT) has increased its payout 123 times since its public market listing in 1994. The main driver has been its ability to invest in real estate that generates steady and growing rental income.
The REIT primarily invests in retail and industrial properties net leased to high-quality tenants in durable industries. However, it has been expanding into new property verticals over the years. Last year, it made a small, under-the-radar investment in the data center sector. That deal opens the door to a massive growth opportunity that could give it more power to grow its dividend in the future.
In November, Realty Income announced that it formed a build-to-suit data center development joint venture (JV) with leading data center REIT Digital Realty (NYSE: DLR). It agreed to invest about $200 million for an 80% equity interest in the JV. That was a small fraction of the record $9.5 billion the REIT invested in real estate last year.
Source Fool.com
