Agree Realty(US:ADC) The Motley Fool·2024-11-09 11:30Core Insights - Dividend-paying stocks consistently outperform non-dividend-paying stocks, providing a reliable income stream and long-term wealth generation [1][2][3] Dividend Investing Overview - Dividend stocks have shown impressive performance, with a 50-year study indicating an annual return of 9.17% for dividend payers compared to 4.27% for non-payers [3] - These stocks are less volatile, appealing to investors seeking stability alongside growth [3] High-Yield Dividend Stocks Agree Realty - Offers a 4.1% dividend yield and manages retail properties, with 99.6% of its properties leased and a weighted average remaining lease term of 7.9 years [5][6] - Major tenants include Walmart and Dollar General, with no single tenant exceeding 6.1% of annualized base rent [7] - Despite rising interest rates, Agree Realty invested $524.9 million in 2024 across 144 properties, ensuring steady rental income [8] - The company maintains a strong balance sheet with a low leverage ratio and a payout ratio of 73% of adjusted funds from operations [9] Realty Income - Provides a 5.5% dividend yield and has a 53-year history in commercial real estate, with a diverse portfolio of over 15,450 properties [10][11] - Utilizes triple-net leases, allowing for steady cash flow and lower rents, with 91% of its portfolio in retail properties [12][13] - The largest tenant, Dollar General, accounts for only 3.4% of annual rent, reducing reliance on any single client [14] Stag Industrial - Features a 3.9% dividend yield and focuses on U.S. industrial properties, owning 573 properties primarily in warehouses and distribution centers [15][17] - Major tenants include Amazon, contributing 3% to annual base rental revenue, with a diverse tenant base [16] - Positioned to benefit from a projected 8% compound annual growth rate in the global warehousing and distribution market through 2030 [18]