A Dividend Beast With Massive Growth Potential
Added 2023-06-18 11:44:22 +0000 UTCGood morning team,
As I mentioned many times in the past one of the most important things in structuring your portfolio is diversification.
We have covered many technological growth stocks, many dividend options and multiple value investments and now I would like to offer you another point of diversifying your portfolio by opening up and exposure to Real Estate.
The company Iโm looking into right now itโs called Realty Income Corp ticker symbol: O and itโs a NYSE stock trading for $61 as of June 2023.
This stock is one of the best in class so it wonโt be cheap but you will own one of the best REIT stocks with good exposure to the rental real estate market.
Revenue growth is 42% over the past year and 180% over 5 years.
Net income is 900 million which is 190% spike from 5 years ago.
Assets to liabilities is 2x which is very good.
Net profit margin is 25% - ๐
Dividend yield is 5%
There is also significant tax benefits to being a REIT investor which I donโt detail here but you can research that after this post.
Itโs 80% help by institutional investors which means a lot of stability for the stock.
Only issue is that itโs 45 PE - expensive but as you just saw for a good reason.
If youโre looking for exposure to the real estate market specifically to rental Real Estate market this stock is one of the best in class as far as fundamentals financials and business model. Having said that, itโs gonna come expensive so I would slowly build my position whenever the price goes down a little bit and nibble on the stock every time I can get it a bit cheaper.
Now letโs be honest the stock is not gonna make millionaires itโs not going to grow Tesla levels itโs a solid dividend stock in the great business. If there is something that interest you for your portfolio is definitely worth more research.
