Is This Dividend Aristocrat REIT a Buy?

But aside from its track record as a Dividend Aristocrat with 27 consecutive years of payout hikes under its belt, there's another reason that conservative investors will love the stock now: It tends to hold up better than average in down markets. While the S&P 500 index and the Nasdaq Composite are down 5% and 9%, respectively, year to date, it has slipped just a bit more than 1%. But is the stock a smart buy now for income investors?

Realty Income ( O 0.14% ) is so committed to its unusual policy of sending its shareholders dividends each month that it trademarked the phrase "The Monthly Dividend Company." Among its real estate investment trust (REIT) peers, Realty Income has unquestionably been a leader in terms of navigating the COVID-19 pandemic over the past two years. Realty Income offers investors a nice balance of income and growth potential. To cap it all off, the stock can be bought at a fair valuation. Realty Income trades at a price-to-AFFO multiple of 18.1. This is hardly a steep valuation for one of the all-around best REITs, and one that steadily grows at a mid-single-digits clip.

Source: Motley Fool

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