Is Agree Realty a Millionaire Maker?

Core Viewpoint - Agree Realty (ADC) offers a 4.1% dividend yield, slightly above the REIT sector average of 3.7%, but below the 5.6% yield from Realty Income, raising questions about its premium price for investors aiming for substantial portfolios [1] Group 1: Company Overview - Agree Realty is a net lease REIT with over 2,200 properties, providing significant diversification and reducing risk associated with single-tenant leases [2] - The company focuses on retail assets, which are easier to manage and trade, operating in a U.S. retail net lease market valued at approximately $1.5 trillion [3] - Agree Realty actively manages its portfolio by selling properties from weaker tenants like Walgreens and acquiring from stronger retailers such as Tractor Supply and TJX Companies [4] Group 2: Financial Strength - The company maintains a strong balance sheet with an investment-grade credit rating, allowing it to issue debt at favorable rates and withstand financial challenges without jeopardizing its dividend [5] - Over the past decade, Agree's dividend has grown at a compound annual rate of roughly 6%, significantly outpacing Realty Income's growth rate [7] Group 3: Investment Potential - Agree Realty's smaller size compared to Realty Income allows for easier business growth with less investment volume needed to impact financial results [6] - The company's share price has nearly returned to pre-pandemic levels, indicating strong growth potential, while Realty Income's stock remains below early 2020 levels [8] - Agree Realty is positioned as a growth and income stock, appealing to investors looking for long-term wealth accumulation rather than immediate income [9]