5 Reasons This High-Yield, Monthly Dividend Blue Chip Could Crush The Market Over The Next Decade

(Source: Imgflip)

The goal of my dividend growth retirement portfolio is to buy top-quality income stocks at attractive valuations. The ultimate goal is for every company I invest in to have long-term, market-beating total return potential. This often means overweighting in the short-term into beaten-down sectors that Wall Street is extremely bearish on.

VNQ Total Return Price data by YCharts

Over the past two years, interest rates rising off their all-time lows have caused even the bluest of blue chip REITs to underperform the market by a wide margin.

(Source: Hoya Capital Real Estate)

However, the good news is that now REITs are trading at their lowest valuations since 2012, which potentially means the sector is set to outperform going forward.

(Source: Hoya Capital Real Estate)

This is especially true of triple net-lease or NNN retail REITs like Realty Income (O). That’s because the stronger economy means that retail sales are rising at a quick pace which will benefit the REIT’s fundamentals.

In fact according to BlackRock (BLK), the world’s largest asset manager, since 1995, the top three sectors to own in our current economic/interest rate environment (rising rates, flat/falling yield curve) have been: technology, energy, and REITs. Since 1995 during bear flattening yield curve regimes, REITs have typically generated 13% annual total returns.

So let’s take a look at the five reasons I consider Realty Income to be one of the best low-risk, high-yield blue chips you can buy today. More importantly learn why the stock has the potential to beat the market over the next decade by as much as 25%.

A Business Model That’s Perfect For Safe, Generous And Steadily Growing Dividends

Founded in 1969 and IPOing in 1994, Realty Income is America’s largest triple net lease REIT.


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