2024-04-19 07:00:00 ET
Summary
- Realty Income's weighting in my portfolio is the biggest for a REIT and the 12th-biggest overall.
- The equity REIT set a record for total property investment volume in 2023 and has ample room to keep growing via a ~$14 trillion addressable market.
- Earlier this year, Realty Income leveraged its A-rated balance sheet to complete $1.25 billion of debt issuances at highly attractive rates.
- Relative to fair value, the triple net lease REIT's shares could be discounted by more than 30%.
- Realty Income could be positioned to conservatively deliver 45% cumulative total returns through 2026.
As a dividend growth investor, it's my goal to build a portfolio centered around reliably growing passive income. The idea is that one day, my portfolio will generate enough dividend income to cover my living expenses.
My rationale for doing so is that such an approach would allow me to avoid having to sell off my portfolio to fund my lifestyle in potential retirement. That would save me the trouble of being at the mercy of the market for the valuations that I could fetch for my investment holdings. Thus, this rising passive income stream could prevent me from being a forced seller at inopportune times....
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For further details see:
Realty Income: One Of My Favorite Holdings Is Now A Bargain Buy