Investors seeking a reliable source to generate reliable monthly passive income could consider investing in Realty Income (NYSE:O) and Agree Realty (NYSE:ADC) stocks. These companies operate as REITs (real estate investment trusts) and pay monthly dividends. Further, these stocks have an Outperform Smart Score of “Perfect 10” on TipRanks.
Realty Income’s Dividend Payment History
Realty Income is a Dividend Aristocrat (increased dividend for at least 25 consecutive years). Since listing on the stock exchange in 1994, Realty Income has increased its dividends 117 times. Further, its dividends have grown at a CAGR of 4.4% since 1994, while it offers a solid dividend yield of over 5%.
Its robust dividend growth is supported by its solid cash flows, driven by its 11,400 real estate properties. Further, its long-term leases and continued investments add stability and support its growth. Investors should note that its portfolio is highly diversified, while 94% of its total rents are resilient to economic downturns.
Is Realty Income stock a Good Buy?
Wall Street analysts are cautiously optimistic about Realty Income stock. It has received six Buy and three Hold recommendations for a Moderate Buy consensus rating. Meanwhile, analysts’ average price target of $71.94 implies 25.18% upside potential.
TipRanks’ data shows that hedge funds bought 703.9K shares in the last three months. Meanwhile, insiders sold Realty Income stock worth $475.8K. Overall, it has a “Perfect 10” Smart Score on TipRanks.
Agree Realty’s Dividend Payment
Agree Realty transitioned to a monthly cash dividend in January 2021. Before that, ADC increased its dividend for 111 consecutive quarters. Recently, it increased the monthly dividend by 5.75 year-over-year. Meanwhile, ADC stock is offering a dividend yield of 4.2%.
Its payouts are supported by its high-quality tenants and earnings base. Its retail properties are leased to leading omnichannel retailers that add stability to its cash flows. Further, Agree Realty’s payouts are well covered, and the company aims to increase its dividends further. Its active portfolio management and increased investments are expected to accelerate growth and drive dividend payments.
Is Agree Realty Buy or Hold?
ADC stock has a Strong Buy rating consensus on TipRanks based on nine Buys and one Hold recommendation. Further, these analysts’ average price target of $78.35 implies 21.74% upside potential.
Agree Realty stock has positive indicators from hedge funds and retail investors. TipRanks’ data shows that hedge funds bought 412.2K shares in the last three months. Meanwhile, 2.4% of investors increased their holdings in ADC stock. It has an Outperform Smart Score of “Perfect 10.”
