2024-05-01 05:30:00 ET
Realty Income (NYSE: O) is a stock that dividend investors tend to find very attractive. There are some very good reasons for that, too.
But that doesn't mean it is the only net lease real estate investment trust (REIT) that investors should be looking at. In fact, it trails behind this one peer when it comes to one important aspect of dividend. Here's the REIT that out-distances Realty Income.
Before naming names, it is important to understand what net lease REITs do. For starters, they are property owning REITs, so they buy physical assets and then lease them out to tenants, collecting rent. But net lease properties are usually single tenant assets, so there is only one lessee in each property. That means that any single property in the portfolio is high risk since a tenant departure would mean an entire building is sitting empty. Having a large portfolio of assets offsets this risk.
For further details see:
Like Realty Income? This Competitor Has an Even Better Dividend Track Record