Realty Income (O)

Realty Income is a REIT with a portfolio of over 11,000 properties that are under long-term lease agreements.

Its top tenants include big names like Walmart, CVS Pharmacy, and Walgreens — companies that have survived and thrived through thick and thin.

In fact, the REIT claims that it collects around 43% of its total rent from investment-grade tenants. A diversified, high-quality tenant base allows Realty Income to pay reliable dividends.

Moreover, while most dividend-paying companies follow a quarterly distribution schedule, Realty Income pays its shareholders every month.

The stock currently yields 4.7%.

Jefferies analyst Jonathan Petersen has a ‘buy’ rating on Realty Income and a price target of $78 — roughly 23% above where the stock sits today.

Fundrise helps you invest in real estate without having to buy a house. Let their state-of-the-art technology and in-house experience open the door to new opportunities today.

Sign up

W. P. Carey (WPC)

W. P. Carey is another generous dividend-payer from the REIT space. The company recently raised its quarterly dividend rate to $1.061 per share, which translates to an annual yield of 5.1%.

To put things in perspective, the average S&P 500 company yields just 1.6% at the moment.

Those dividends are backed by a portfolio of 1,357 properties totaling approximately 161 million square feet. The company has invested in industrial, warehouse, office, retail, and self-storage properties subject to long-term lease agreements with built-in rent escalators.

While the broad market is deep in the red year to date, W. P. Carey shares are actually up about 3% in 2022.

Raymond James analyst RJ Milligan expects the trend to continue. The analyst has an ‘outperform’ rating on W. P. Carey and a price target of $95 — implying a potential upside of 14% from the current levels.

Pour your portfolio a glass of recession resistance

Fine wine is a sweet comfort in any situation — and now it can make your investment portfolio a little more comfortable, too.

Ownership in real assets like fine wine could be the diversification you need to protect your portfolio against the volatile effects of inflation and recession. High-net-worth investors have kept this secret to themselves for too long.

Now a platform called Vinovest helps everyday buyers invest in fine wines — no sommelier certification required.

Vinovest automatically selects the best wines for your portfolio based on your goals, and it tells you the best times to sell to get the best value for your wine.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. Prior to joining the team, he was a research analyst and editor at one of the leading financial publishing companies in North America. An avid advocate of investing for passive income, he wrote a monthly dividend stock newsletter for the better half of the past decade. Jing holds a Master’s Degree in Economics and an Honours Bachelor of Science Degree, both from the University of Toronto.

What to Read Next

Disclaimer

The content provided on MoneyWise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.