HDO is the largest and most exciting community of income investors and retirees with over +8000 members. We are looking for more members to join our lively group! Our Income Method generates strong returns, regardless of market volatility, making retirement investing less stressful, simple and straightforward .Features include: model portfolio with buy/sell alerts, preferred and baby bond portfolios for more conservative investors, vibrant and active chat with access to the service’s leaders, dividend and p ...

Company Overview - British American Tobacco (BAT) derives approximately 80% of its revenue from its combustibles division, with cigarettes constituting about 98% of the volume in that division, confirming its identity as a cigarette company [1] - The company's cigarette volume has been on a declining trend, with a reported decline of 6.8% in the first half of 2024, following declines of 5.3% in 2023, 5.1% in 2022, 0.1% in 2021, 4.6% in 2020, and 4.7% in 2019 [11] Dividend Analysis - The high dividend yield of British American Tobacco, currently at 8.1%, is primarily a reflection of its struggling business, as the best year for volume in the past five years saw only a 0.1% decline [3][7] - Despite the high yield, there are concerns that rising prices to offset volume declines may eventually lead to an unsustainable dividend [8] - There is no immediate risk of a dividend cut, but the long-term sustainability of the dividend is threatened by the ongoing decline in tobacco operations [15] Comparison with Realty Income - Realty Income, a net lease REIT, offers a lower yield of 6% but has a strong track record of increasing dividends annually for three decades, indicating a more stable business model [5][12] - Realty Income's business model is designed to pass income to investors, and it has a robust occupancy rate, even during economic downturns, with a reported occupancy rate of 96% during the Great Recession [10] - The addressable market for Realty Income is estimated to be over $12 trillion, suggesting significant growth potential despite its large market cap of $46 billion [13] Risk Assessment - Investing in British American Tobacco is characterized as a high-risk bet due to the long-term decline of its core business, while investing in Realty Income is viewed as a more reliable option for dividend investors [12][14] - The S&P 500 index currently yields around 1.2%, making both British American Tobacco and Realty Income high-yield stocks, but they represent vastly different levels of risk based on their underlying business models [20]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore exclusive income-focused portfolios [1] Group 2 - The definition of retiring rich varies among individuals, with some prioritizing a comfortable income stream that allows for peace of mind [2] - The focus is on defensive stocks with a medium- to long-term investment horizon [2]

Realty Income (NYSE: O ) is facing a number of potential catalysts in its core business which could lead to strong adjusted FFO growth in 2025. The Federal Reserve is likely going to continue to shift federal fund rates lower next yearI look for high-risk, high-reward situations, mainly in the technology markets. I am an early buyer of Bitcoin and my portfolio mainly focused on companies with asymmetric long-term upside. My top holdings include: Bitcoin, Tesla, Google, Amazon and Nvidia.Analyst’s Disclosure ...

Core Insights - The Conservative Income Portfolio focuses on value stocks with high margins of safety and aims to reduce volatility through well-priced options [1] - The Enhanced Equity Income Solutions Portfolio targets a yield of 7-9% while minimizing volatility [1] - Realty Income Corporation (NYSE: O) was deemed fairly valued, leading to a decision to move to the sidelines as it offered no significant alpha [1] Group 1: Investment Strategies - The Covered Calls Portfolio is designed for lower volatility income investing with an emphasis on capital preservation [1] - The fixed income portfolio aims to acquire securities that have high income potential and are significantly undervalued compared to peers [1] Group 2: Team Experience - Trapping Value consists of analysts with over 40 years of combined experience in generating options income while prioritizing capital preservation [2] - The Conservative Income Portfolio is managed in partnership with Preferred Stock Trader, featuring two income-generating portfolios and a bond ladder [2]

Core Viewpoint - Realty Income's stock has declined by approximately one-third since its peak in February 2020 due to higher interest rates impacting profitability, despite the company's continued expansion and property acquisitions [1][2]. Company Performance - Realty Income has successfully added properties and tenants, demonstrating business strength even amid rising interest rates [2][5]. - The company specializes in net leasing single-tenant commercial properties, which allows for potentially higher profits as costs are transferred to tenants [3]. - Realty Income is required to distribute at least 90% of its taxable income as dividends, which has led to a consistent monthly dividend payout since 1994 [4]. Financial Metrics - In the first nine months of 2024, Realty Income's revenue increased by 31% to $3.9 billion, largely driven by the acquisition of Spirit Realty Capital [6]. - Net income for the same period was approximately $666 million, reflecting a modest 1% year-over-year increase, while funds from operations (FFO) rose by 27% to $2.7 billion [7]. - Analysts project a 6% revenue growth for 2025, aligning with historical averages, although the stock has seen a slight decline over the past year [8]. Dividend and Valuation - The company has raised its monthly dividend five times in the last year, resulting in an annual payout of $3.17 per share, yielding 5.7%, significantly higher than the S&P 500's average of 1.2% [9]. - Realty Income's price-to-earnings (P/E) ratio stands at 53, which may seem high, but this is influenced by non-cash expenses like depreciation [10]. - The preferred valuation metric for REITs is the price-to-FFO ratio, where Realty Income trades at 14, indicating it is relatively inexpensive, especially with falling interest rates expected to boost profits [11]. Future Outlook - Realty Income stock is positioned for potential gains in 2025, supported by falling interest rates and a high dividend yield [12][13]. - The company's nearly 99% occupancy rate and ongoing property portfolio expansion reinforce its stability, suggesting that shareholders may benefit from both high dividends and significant price appreciation [14].

Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing ! There is a free trial and a special discount of 10% for you. Join us today!Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract t ...

I just can't get enough of Realty Income (O 0.36%) this year. I have bought shares of the leading real estate investment trust (REIT) several times, including in the past week. The main reason is its high-yielding and steadily rising dividend. Given the REIT's current value proposition, I'll probably continue buying more shares any chance I get. Here's why I keep adding to my position.An excellent income streamRealty Income is an amazing dividend stock. The REIT makes monthly dividend payments (it calls its ...

Dividend Increase Announcement - Realty Income Corporation (O) increased its common stock monthly cash dividend to 26.40 cents per share from 26.35 cents, marking its 128th dividend hike since its NYSE listing in 1994 [1] - The new dividend will be paid on Jan 15, 2025, to shareholders of record as of Jan 2, 2025, resulting in an annualized dividend of $3.168 per share and a dividend yield of 5.68% based on the Dec 10 share price of $55.78 [2] - This marks the company's 654th consecutive monthly dividend payout in its 55-year history [3] Dividend Growth and Consistency - Realty Income has made 109 consecutive quarterly dividend hikes and achieved a compound average annual dividend growth rate of 4.2% since its NYSE listing [4] - The company has increased its dividend 23 times in the last five years, with a five-year annualized dividend growth rate of 3.04% [5] Business Model and Financial Strength - Realty Income's business model supports sustainable dividend payments through reliable cash flows from its high-quality portfolio, with a focus on service-oriented, non-discretionary, and low-price-point retail tenants [6] - The company invested $740.1 million in 169 properties during Q3 2024, achieving an initial weighted average cash yield of 7.4%, and raised its 2024 investment volume guidance to approximately $3.5 billion [7] - Realty Income maintains a healthy balance sheet with $5.2 billion in liquidity, a net debt to annualized pro forma adjusted EBITDAre of 5.4x, and a fixed charge coverage of 4.6x [8] - The company's financial flexibility and lower debt-to-equity ratio compared to the industry support the sustainability of its dividend payments [9] Industry Context - Mid-America Apartment Communities (MAA) increased its quarterly dividend by 3.1% to $1.515 per share, with an annualized dividend of $6.06 per share [11] - Alexandria Real Estate Equities, Inc (ARE) announced a 1.5% sequential hike in its Q4 2024 cash dividend to $1.32 per share [12] - Whitestone REIT (WSR) declared a 9% increase in its monthly cash dividend to 4.5 cents per share for Q1 2025 [13]

I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking AlphaAnalyst’s Disclosure: I/we have a beneficial long position in the shares of O, SPG, NNN ...