1 Magnificent S&P 500 High-Yield Dividend Stock Down 25% to Buy and Hold Forever
If you are the type of investor who likes to buy and hold stocks forever, you have to use a different set of rules. Simply picking the highest yielding stocks off a list, like the companies in the S&P 500 index, won't do. You need to aim higher, looking for high-yield dividend stocks that you can count on and, better yet, trying to buy them when they are on sale. That is the exact opportunity that exists today with this landlord, which is still trading around 25% below where it was prior to the coronavirus pandemic.Realty Income (NYSE: O) is one of the largest internationally diversified real estate investment trusts (REITs) you can buy. It uses a net lease approach, which means that its tenants are responsible for most property-level expenses for the buildings they occupy. Often net lease deals are financing arrangements for the tenant, which sells the property to raise cash while still maintaining effective control over the asset because of the lease structure. Realty Income, which tends to have advantaged access to capital markets, makes the difference between its cost of capital and the rent it collects.Image source: Getty Images.Continue reading
If you are the type of investor who likes to buy and hold stocks forever, you have to use a different set of rules. Simply picking the highest yielding stocks off a list, like the companies in the S&P 500 index, won't do. You need to aim higher, looking for high-yield dividend stocks that you can count on and, better yet, trying to buy them when they are on sale. That is the exact opportunity that exists today with this landlord, which is still trading around 25% below where it was prior to the coronavirus pandemic.
Realty Income (NYSE: O) is one of the largest internationally diversified real estate investment trusts (REITs) you can buy. It uses a net lease approach, which means that its tenants are responsible for most property-level expenses for the buildings they occupy. Often net lease deals are financing arrangements for the tenant, which sells the property to raise cash while still maintaining effective control over the asset because of the lease structure. Realty Income, which tends to have advantaged access to capital markets, makes the difference between its cost of capital and the rent it collects.
Image source: Getty Images.
