Company Overview - Realty Income has generated a compound annual total return of 13.6% since its listing in 1994, significantly outperforming the S&P 500 index by approximately four times [5] - The company currently has a market capitalization of $50 billion and is well-positioned for growth within the $22.5 trillion U.S. commercial real estate market [11] Investment Proposition - Realty Income offers a high yield of 5.7%, which translates to $57,000 annually for a $1 million investment, providing a substantial income source for retirees [1] - The company has a remarkably high occupancy rate of 98.5%, indicating strong demand for its properties and quality tenants [9] - Realty Income focuses on clients that supply consumer staple goods, ensuring consistent demand regardless of economic conditions [8] Financial Performance - The company has historically increased its dividend payout by an average of 4.3% annually since 1994, suggesting a strong potential for sustainable income growth [12] - Realty Income employs net lease agreements, which transfer many operating expenses to tenants, enhancing financial safety [9] Market Position - The real estate sector, particularly through REITs like Realty Income, is characterized by stability and lower risk compared to more volatile asset classes such as cryptocurrencies and penny stocks [4] - The company's strategy of investing in consumer-facing real estate provides a strong economic moat, as these properties are essential for various businesses [8]

Group 1: Alpine Income - Alpine Income is a relatively new REIT founded in 2019, with a market cap of $216.6 million, making it a smaller alternative to larger REITs like Realty Income, which has a market cap of $51 billion [4] - The company focuses on single-tenant net-lease properties, resulting in lower overhead costs as tenants are responsible for expenses like taxes, insurance, and maintenance [4][5] - Alpine Income's portfolio consists of 134 properties that are 99% occupied and diversified across 35 U.S. states, with top tenants including well-known brands like Dicks Sporting Goods and Lowe's [5] - The company offers a high dividend yield of 7.6%, significantly above the S&P 500 index average of 1.27%, making it attractive for income-focused investors [6] Group 2: Dollar General - Dollar General's shares have increased by 22% year to date, recovering from previous weaknesses due to high inflation affecting its low-cost business model [7] - The company is better positioned to handle potential threats from new tariff policies, with only 10% of its inventory exposed to global tariffs, compared to 50% for Dollar Tree and nearly 100% for other retailers [8] - Dollar General's focus on low prices and rural areas creates an economic moat, attracting customers away from larger competitors like Walmart and Target [9] - The company has an attractive valuation with a forward price-to-earnings (P/E) multiple of 17, significantly lower than Walmart's 37 times expected earnings, and offers a dividend yield of 2.6% [10]