The Motley Fool highlights Realty Income and Philip Morris International as dividend-stock picks, citing yields of 5.86% and 3.35%, respectively, versus the S&P 500’s 1.05% average. It favors Realty Income for income stability and sees more growth potential in Philip Morris.
Realty Income is a retail-focused REIT that pays monthly dividends, with tenants ranging from dollar stores to auto-repair shops. About 15% of its annualized contractual rent comes from the UK, and its triple-net leases leave tenants paying property costs such as taxes, maintenance and insurance.
Philip Morris reported net revenue up 10.4% year over year to $11.2 billion, with smoke-free products accounting for 42% of revenue; its shares had risen 88% over five years. The article notes nicotine is addictive and dangerous, and describes the company’s smoke-free products as designed to offer a better safety profile than traditional cigarettes. It says Philip Morris has raised its dividend for 17 consecutive years.
