Make your money work for you while you sleep, consider investing in the shares of solid dividend-paying companies. One such investment option is Agree Realty (NYSE:ADC). It has an Outperform Smart Score on TipRanks and can fetch you a steady income despite the volatility in the stock market.
ADC’s Stellar Dividend Payment & Growth
ADC’s solid dividend payment history and high-quality tenant base indicate that the company’s payouts are well covered. ADC has paid dividends for 111 consecutive quarters. Meanwhile, since January 2021, it has started paying monthly dividends (a transition from quarterly payouts) as it aligns with its rent collection.
On average, ADC has delivered an annual total return of 12.4% since its IPO in 1994. Moreover, its dividends grew at a CAGR of 5.8% in the past decade. In October, it increased its monthly dividends by 5.7% year-over-year. Further, its monthly dividends of $0.24 a share translate into a yield of 4%.
Its solid payout history, high-quality tenant base (top retailers with recession-resilient businesses), and long-term leases add stability to its payouts (8.9 years). Moreover, a high occupancy rate bodes well for growth (99.7% are leased).
Also, its low leverage and strong balance sheet position it well to capitalize on growth opportunities and enhance shareholders’ value. (See TipRanks’ Dividend Calculator).
Is ADC a Good Stock to Buy?
ADC stock has received eight Buys and one Hold for a Strong Buy consensus rating. Meanwhile, analysts’ average price target of $75.39 implies 8.8% upside potential.
ADC stock has positive signals from hedge funds and retail investors holding portfolios on TipRanks. Overall, it carries an Outperform Smart Score of eight on 10.
Bottom Line
Agree Realty stock has remained resilient this year and performed better than the broader markets. ADC stock remains flat year-to-date compared to a 17% decline in the S&P 500 Index (SPX). Further, it has consistently paid monthly dividends to its shareholders, making it an attractive passive income stock.
