NNN REIT, Inc.: A Dividend Champion with a Strong Track Record and High Yield

AinvestTuesday, Apr 22, 2025 6:29 pm ET
1min read

NNN REIT, Inc. (NNN) is a safe dividend stock with a yield above 5%. A study by Newton Investment Management found that high-yield dividend stocks outperformed the broader market during inflationary periods, while Hartford Funds' research showed that high-yield portfolios returned an average of 12.3% annually from 1969 to 2024. Experts advise prioritizing high-yield stocks with a proven record of dividend growth, but high yields are not inherently a red flag.

Title: NNN REIT, Inc.: A Safe Dividend Stock with High Yield

NNN REIT, Inc. (NNN) stands out as a safe dividend stock with a yield above 5%, making it an attractive option for income-focused investors. A recent study by Newton Investment Management [1] found that high-yield dividend stocks outperformed the broader market during inflationary periods from 1940 to 2021. Additionally, Hartford Funds' research [2] showed that high-yield portfolios returned an average of 12.3% annually from 1969 to 2024, compared to 10.5% for mid-yield and 9.7% for low-yield portfolios. Despite the allure of high yields, experts advise prioritizing stocks with a proven record of dividend growth.

NNN REIT, Inc. offers a quarterly dividend of $0.75 per share, resulting in a dividend yield of 6.15% as of April 20, 2025. This high yield, combined with the company's strong financials and consistent dividend performance, makes NNN an appealing choice for investors seeking steady income. The company's dividend growth spans several years, indicating its commitment to rewarding shareholders with regular payouts.

In the context of the broader market, NNN REIT, Inc. has shown resilience during recent market downturns. Since the beginning of 2025, the Dividend Aristocrats Index, which tracks companies with 25 consecutive years of dividend growth, has fallen by over 2% while the broader market has slipped by nearly 10%. This relative performance underscores the value of dividend-focused stocks, particularly during volatile market conditions.

While NNN REIT, Inc. is a promising investment, it is essential to consider the broader market and economic conditions. High-yield stocks, in themselves, are not a red flag. Instead, investors should focus on companies that offer attractive yields alongside a history of reliable dividend increases. As the market continues to evolve, NNN REIT, Inc. remains a strong contender for income-focused portfolios.

References
[1] https://finance.yahoo.com/news/verizon-communications-inc-vz-one-202337313.html
[2] https://finance.yahoo.com/news/nnn-reit-inc-nnn-among-142038248.html