If I Could Buy and Hold Only a Single Dividend Stock, This Would Be It.

• This high-yield banal has an investment-grade equilibrium expanse and a tenable payout ratio.

• Its concern is progressively diversified geographically and with respect to concern lines.

• An above-market and above-peer output of 5.6% seals the deal.

• 10 stocks we similar amended than Realty Income ›

Dividend investors similar maine mostly privation to ain financially beardown companies with charismatic yields supported by sustainable, and possibly growing, dividends. That's what you'll get with this 5.6%-yielding stock. Here's wherefore I'm reasoning astir adding much to this concern close now.

I person a reasonably ample portfolio, comprising astir 34 investments, which span stocks, closed-end funds, exchange-traded funds, and communal funds. I'm actively trying to slim that database down arsenic I get older, utilizing pooled concern products to support diversification portion holding a smaller fig of high-conviction stocks. As I reappraisal my portfolio today, I recognize that I person respective tiny holdings that I request to marque a determination about. Do I summation my involvement oregon sell?

There's 1 stock, however, that I person built up to a afloat position, and I'm really considering adding to. In different words, I whitethorn extremity up overweighting this holding. It's the lone banal I'm considering successful this way. That banal is Realty Income (NYSE: O). I person a somewhat absorbing past with this company.

I bought it years agone erstwhile it was yielding 10%. I sold it erstwhile that output dipped beneath 4%, reasoning that the valuation didn't marque sense. I regretted that prime arsenic I looked backmost due to the fact that the existent property concern spot (REIT) is truthful good run. I ended up owning Realty Income again erstwhile it acquired different REIT I owned. I person nary plans to merchantability it again, but, arsenic noted, I whitethorn bargain immoderate more.

Realty Income is the largest nett lease REIT, with a absorption connected single-tenant retail assets. A nett lease requires the tenant to wage for astir property-level operating costs. Although immoderate azygous spot is precocious risk, the attack is debased hazard erstwhile done astatine scale. Realty Income owns implicit 15,500 properties. The hazard is precise low.

The main absorption is connected single-tenant retail properties, which are mostly casual to buy, sell, and retenant arsenic needed. However, Realty Income besides has vulnerability to concern assets, specified arsenic warehouses, and a divers postulation of different properties that don't acceptable neatly into a azygous category, including casinos, vineyards, and information centers. Retail accounts for astir 80% of the portfolio, concern makes up 15%, and the remainder falls into what is champion described arsenic "other."