Is Realty Income (O) Among the Best REIT Dividend Stocks to Buy for 2024?
Sunday, Dec 15, 2024 1:50 pm ET
3min read Realty Income (O) is a top contender for the title of best REIT dividend stock to buy in 2024, given its impressive track record and attractive fundamentals. The company has increased its monthly dividend for 30 consecutive years, making it a reliable choice for income-focused investors. With a current yield of 5.6%, Realty Income offers a high and stable income stream. The REIT's portfolio of over 15,400 properties, primarily single-tenant net lease properties, provides a diversified and low-risk income source. Realty Income's investment-grade-rated balance sheet and access to capital markets at attractive costs further enhance its appeal. Additionally, the REIT's focus on acquiring high-quality properties and its experienced management team contribute to its long-term success.
However, it's essential to consider the REIT's dividend growth rate compared to the broader sector and other high-yielding dividend stocks. Realty Income's 5-year average growth rate is around 2.5%, which is lower than the broader REIT sector's average of 3.5%. While this may not be as high as some other REITs, Realty Income's consistent dividend growth and strong fundamentals make it a solid choice for income investors.
In conclusion, Realty Income (O) is among the best REIT dividend stocks to buy for 2024, given its strong track record, attractive yield, and stable income stream. While its dividend growth rate may not be as high as some other REITs, Realty Income's consistent performance and low-risk income source make it an excellent choice for income-focused investors. As always, it's essential to conduct thorough research and consider your investment goals and risk tolerance before making any investment decisions.
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