Realty Income REIT Faces Rate Headwinds But Offers Steady Returns for Dividend Investors
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Realty Income is a large REIT with a $65B portfolio of over 15,000 properties, including a growing $10B European portfolio.
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The company pays a 5%+ dividend yield, but faces headwinds from rising interest rates.
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However, higher rates mean higher capitalization rates, which could boost Realty Income's returns on new investments.
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The company targets ~9% total returns for shareholders, with less volatility than the overall market.
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Current high dividend yield presents a buying opportunity for investors focused on long-term, steady total returns.