Should You Forget Realty Income and Buy Healthpeak Properties Instead?

Core Insights - Realty Income is one of the largest and most popular REITs, known for its high-yielding, steadily rising monthly dividend [1] - Healthpeak Properties is also a contender for monthly dividends, offering a higher yield and potential upside [7] Realty Income Overview - Realty Income has declared its 667th consecutive monthly dividend payment, increasing its payment 133 times since its public listing in 1994, with a compound annual growth rate of 4.2% [3] - The current dividend yield is over 5%, surpassing the sector average of around 4%, supported by stable cash flow from a diversified portfolio of 15,400 properties across North America and Europe [4] - The company retains less than 75% of its stable income for dividends, allowing for reinvestment in new income-generating investments, and boasts one of the top 10 balance sheets in the REIT industry [4] Financial Flexibility and Growth Potential - Realty Income is projected to invest over $6 billion last year, with a significant growth runway due to over $14 trillion of real estate suitable for net leases in the U.S. and Europe [5] Healthpeak Properties Overview - Healthpeak Properties transitioned to monthly dividends in April last year, increasing its payment by 1.7%, marking its first raise since a 19% reduction in 2020 [8] - The current dividend yield for Healthpeak is 6.8%, supported by a diversified portfolio of over 700 healthcare properties leased to high-quality operators [9] - The company maintains a 71% dividend payout ratio and a healthy investment-grade balance sheet, providing financial flexibility for portfolio growth [9]