Realty Income's Attractive 5.7% Dividend Yield Tempts Income Investors, But Growth Concerns Limit Upside
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Realty Income is a large, conservative REIT focused on consistent dividends rather than fast growth. Its 5.7% dividend yield is near 10-year highs, suggesting it's on sale.
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Realty Income estimates a $13.9 trillion total addressable market between the U.S. and Europe, providing ample room for future portfolio growth despite its large size.
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Key areas of growth include consolidating competitors, expanding into new property types like industrial, data centers and gaming, and increasing European investments.
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Realty Income trades at an historically attractive valuation, making now potentially a good time to buy the stock for conservative income investors.
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Motley Fool analysts recently identified 10 top stocks to buy now, but Realty Income didn't make the cut.