High-Yield Realty Income Is a Buy if You Love Reliable Dividend Stocks
The S&P 500 index (SNPINDEX: ^GSPC) is yielding just 1.3% today. The average real estate investment trust (REIT) is offering a 4.1% yield. Realty Income's (NYSE: O) dividend yield is a far more compelling 5.8%. That high yield, however, isn't the best part of the story. The really important thing to know about Realty Income has to do with the strength of its business. Here's why you'll love Realty Income if you are looking for reliable dividend stocks.Finding high-yield stocks is actually pretty easy. All you need is one simple screen: dividend yield. There's one problem with only looking at dividend yield, however, because it can lead you to companies that aren't reliable dividend payers. For example, AGNC Investment (NASDAQ: AGNC) has a huge 15% dividend yield and a history of cutting its dividend. Regular dividend reductions probably aren't what most dividend investors have in mind when they buy a dividend stock.Image source: Getty Images.Continue reading
The S&P 500 index (SNPINDEX: ^GSPC) is yielding just 1.3% today. The average real estate investment trust (REIT) is offering a 4.1% yield. Realty Income's (NYSE: O) dividend yield is a far more compelling 5.8%. That high yield, however, isn't the best part of the story. The really important thing to know about Realty Income has to do with the strength of its business. Here's why you'll love Realty Income if you are looking for reliable dividend stocks.
Finding high-yield stocks is actually pretty easy. All you need is one simple screen: dividend yield. There's one problem with only looking at dividend yield, however, because it can lead you to companies that aren't reliable dividend payers. For example, AGNC Investment (NASDAQ: AGNC) has a huge 15% dividend yield and a history of cutting its dividend. Regular dividend reductions probably aren't what most dividend investors have in mind when they buy a dividend stock.
Image source: Getty Images.
