Long-Term Value: NNN REIT Boasts 34 Years of Dividend Growth and Underpriced Shares
-
NNN REIT has a strong 34-year history of consecutive dividend growth and pays an attractive 5.5% dividend yield that's covered by a 69% payout ratio.
-
The REIT has a high-quality portfolio focused on necessity-based retail with 99.5% occupancy and 10+ year average remaining lease term.
-
NNN grew 2022 FFO/share by 4.5% and makes accretive acquisitions, funded conservatively to maintain its safe balance sheet.
-
Shares trade at a P/FFO of 12.8, below the normal 15.8, presenting a buying opportunity while the market underappreciates NNN's potential.
-
Risks include higher interest rates limiting growth and cap rate compression on new investments, but the quality portfolio and dividend history make NNN a compelling long-term pick.