Motley Fool writer James Brumley favors Realty Income, citing its 5.8% forward dividend yield versus about 5% on 10-year Treasuries and 31 years of annual increases. He also notes that high or rising rates can weigh on the shares.
Realty Income is a real estate investment trust that leases retail properties to companies including Walmart, CVS, Family Dollar and Dollar General. The article says it has nearly 99% occupancy across 15,500 properties and pays dividends monthly.
Brumley cautions that Realty Income relies on borrowing to buy properties, making it sensitive to high or rising interest rates. He says this is a major reason its shares have made little net progress since early 2020.
