Investing in profitable companies when their stock prices offer high yields can be very rewarding over the long term. If you have a few hundred dollars that you don't need for reducing debt or covering other living expenses, there are solid companies offering tempting dividend yields right now.Realty Income (O 1.29%), Target (TGT -1.02%), and Philip Morris International (PM 0.76%) have dividend yields that are well above the S&P 500 average of 1.24%. Here's why three fool.com contributors believe they are s ...

Industry Overview - The commercial real estate sector faced challenges in the past year due to higher interest rates, which impacted property values and borrowing capabilities for real estate investors [1] - The S&P U S REIT Index gained only 4 3% in 2023, significantly underperforming the S&P 500's 25% total return [2] - Despite recent underperformance, REITs have outperformed stocks over the longer term [3] Company Focus: Realty Income - Realty Income is highlighted as the top REIT to buy in 2025 due to its strong passive income generation and long-term total returns [3] - The company has paid 654 consecutive monthly dividends and increased its dividend 128 times since its 1994 listing, with 30 consecutive years of annual dividend growth at a 4 2% compound annual rate [4] - An investor who purchased 100 shares in 2013 would have received $3,077 in cumulative dividends by Q3 2023, representing 82% of the original investment, with a current annual dividend income of $308, a 40% increase from the initial $219 [5] Financial Strength and Dividend Sustainability - Realty Income's current dividend yield is over 6%, supported by a conservative payout ratio of around 75% of adjusted funds from operations and a strong balance sheet with A3/A- credit ratings [6] - The company has grown its adjusted funds from operations per share at a 5% compound annual rate since 1995, accelerating to 6% since 2012 [10] Market Opportunity and Growth Strategy - Realty Income is the seventh-largest global REIT, owning $58 billion of commercial real estate across eight countries, with a portfolio primarily in retail (79 4% of annual base rent), industrial (14 6%), casinos (3 2%), and data centers (2 8%) [7] - The company estimates the total addressable market for net lease real estate at $5 4 trillion in the U S and $8 5 trillion in Europe [8] - Realty Income has expanded into new verticals like data centers and casinos, adding $700 billion to its U S market opportunity, and entered additional European countries, increasing its opportunity set by $5 9 trillion [9] - The company has launched a private capital fund management platform, accessing an $18 8 trillion pool of potential investors [9] Long-Term Performance - Realty Income has delivered an average annual total return of 14 1% since its 1994 listing, combining income and growth [11] - The company is positioned to continue growing at a mid-single-digit rate, supported by its financial flexibility, market opportunity, and private capital management business [10][12]

Editor's note: Seeking Alpha is proud to welcome Amethyst Analytics as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access.Here at Amethyst Analytics, we concentrate on REITs, finance, technology, and consumer staples - bringing clarity and actionable insights to help you thrive in the stock market. As a seasoned finance professional with Private Equity expe ...

The REIT is still a reliable long-term investment.Realty Income (O -0.77%), one of the world's largest real estate investment trusts (REITs), is often considered a dependable dividend stock for conservative investors. But over the past three years, its stock declined about 23% as interest rates rose. Even with reinvested dividends, it delivered a dismal negative total return of 10%.Realty Income lost its luster for a few simple reasons. Rising rates made it more expensive to purchase new properties, and the ...

It's been an interesting year for the stock market. The broader benchmark S&P 500 (^GSPC -1.11%) blazed roughly 24.5% higher (as of Dec. 27), thanks largely to eight high-flying tech stocks with market caps exceeding $1 trillion. Market breadth has not been good this year. The Invesco S&P 500 Equal Weight ETF is only up about 12%.Roughly 360 stocks in the S&P 500 have posted returns below the broader market's average. Of those, 168 stocks are trading in the red this year. This means the market is fairly lop ...

This company pays monthly dividends and offers 12% annualized total returns, making it a table-pounding buy.It's hard to find high dividend yields you can trust. Remember, a stock's dividend yield is a ratio of the company's declared payout to its share price. So, a high yield can signal that a stock is risky when the market won't support a higher share price. But that's not always the case. Realty Income (O -0.77%) is a prime example.By design, this well-known real estate investment trust (REIT) (and every ...

Realty Income (O -0.32%) checks every single box for income-seeking investors. The real estate investment trust (REIT) offers a high-yielding dividend backed by an extremely strong financial profile. It also has a fantastic record of increasing its dividend. On top of all that, it pays its dividend monthly instead of the quarterly schedule of most other dividend stocks. These and other factors make it the ultimate dividend stock to buy right now for those with a few hundred dollars to invest.A high-quality, ...

The Federal Reserve’s reset of interest rate expectations for 2025, with the latest forecast of only two quarter-point rate reductions next year, lower than prior projections, has sent the market in jitters. Particularly, the more rate-sensitive stocks like REITs that depend on debts and pay a higher-yielding dividend have faced downward pressure.Realty Income (O) stock has not been an exception, and the stock has tanked 15.2% over the past three months, closing at $53.24 on Tuesday on the NYSE. In the past ...

Nationally ranked stock picker for 30 years. Victory Formation and Bottom Fishing Club quant-sort pioneer.....Paul Franke is a private investor and speculator with 38 years of trading experience. Mr. Franke was Editor and Publisher of the Maverick Investor® newsletter during the 1990s, widely quoted by CNBC®, Barron’s®, the Washington Post® and Investor’s Business Daily®. Paul was consistently ranked among top investment advisors nationally for stock market and commodity macro views by Timer Digest® during ...

For quite some time now, I have been a fan of a REIT (real estate investment trust) by the name of Realty Income Corporation (NYSE: O ). For those not familiar with the business, it is aCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat discu ...