Best Stock to Buy Right Now: Realty Income vs. NNN REIT

Core Viewpoint - Investors seeking dividends may find real estate investment trusts (REITs) appealing due to their tax structure requiring a minimum of 90% of taxable income to be distributed as dividends [1] REIT Specialization and Economic Challenges - REITs typically focus on various property types, with retail being a significant sector, which can face challenges during economic downturns, as seen during the COVID-19 pandemic and the interest rate hikes in 2022 and 2023 [2] Performance Recovery - Many REITs have recovered from previous economic challenges, with retail-focused REITs returning an average of 6.9% for the first nine months of 2025 [3] Realty Income Overview - Realty Income owns over 15,540 properties, with approximately 80% of its rent derived from retail, including grocery and convenience stores [4] - The company boasts a 98.7% occupancy rate and has increased its adjusted funds from operations (AFFO) by 2.9% year-over-year to $1.09 per diluted share [5] Realty Income Key Metrics - Realty Income has a market capitalization of $53 billion, a dividend yield of 5.62%, and has consistently increased dividends for over three decades [7] - The company projects an AFFO per share of $4.25 to $4.27, comfortably covering its annualized dividend of $3.23 [7] NNN REIT Overview - NNN REIT manages nearly 3,700 properties across various retail sectors, maintaining a high occupancy rate of 97.5% [9] - The company's quarterly AFFO per share increased from $0.84 to $0.86 [9] NNN REIT Key Metrics - NNN REIT has a market capitalization of $8 billion, a dividend yield of 5.74%, and has increased its dividend for 36 consecutive years [11] - The projected AFFO per share is between $3.41 and $3.45, ensuring sufficient coverage for its dividend payments [11] Investment Considerations - Both Realty Income and NNN REIT have demonstrated resilience in a challenging retail environment, with strong dividend histories and similar yields [13] - The choice between the two depends on investor preference for Realty Income's larger, diversified portfolio versus NNN REIT's smaller, growth-oriented focus [14]