It isn't often that both income-focused investors and total-return-oriented investors can agree on a stock. However, one company -- boring and high-yielding Realty Income (NYSE: O) -- might actually be a winner for both. Here's why this income stock, which is down more than 20% from its 2022 highs, could be a great option for both dividend lovers and those who aim for total return by reinvesting their dividends.
Before examining performance numbers, it is essential to understand what Realty Income does as a business. It is a real estate investment trust (REIT), focused largely on owning retail properties (roughly 80% of rents). The properties it owns are single-tenant and have net leases. A net lease requires the tenant to pay for most property-level operating costs. Although any single property may be high risk, across a large portfolio, the risk is relatively low. Realty Income is the largest net lease REIT, with over 15,500 properties.
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