Trading News

1 REIT You’ll Wish You Bought In October 2022


S&P 500




Dow 30








Russell 2000




Crude Oil
















10-Yr Bond
















CMC Crypto 200




FTSE 100




Nikkei 225




The stock market is reeling from the pressures of a potential global recession, and central banks around the world are gearing up for the most aggressive interest rate hikes in history.

The United Nations recently warned that the world is “on the edge of a recession,” which will likely be worse than the pandemic-driven recession in 2020 or the global financial crisis of 2008.

Understandably, U.S. equities have taken a hit, with the S&P 500 index registering the worst monthly performance in September since March 2020.

Resilient Real Estate

Though the real estate prices have fallen significantly from their peak, they are materially higher than the 2021 levels. Despite the strikingly high mortgage rates, home prices as of August are roughly 13.5% higher than the August 2021 levels, according to a report from CoreLogic Inc. In addition, real estate software platform Black Knight stated that home prices in 97 of the 100 largest U.S. markets are 40% higher than the prepandemic level.

Investing in real estate can shield your portfolio from heightened volatility. While investing directly in real estate can be challenging because of sky-high mortgage rates, real estate investment trusts (REITs) are poised to generate a sizable return on investment. REITs are required to distribute at least 90% of their taxable earnings as dividends to shareholders, thereby ensuring a steady revenue stream for investors.

Realty Income Corp. (NYSE: O): The Monthly Dividend Stock

Popular REITs have been able to deliver stable returns to shareholders over the past year — despite the macroeconomic headwinds. With a $35.86 billion market cap, Realty Income is one of the largest U.S.-based REITs. It owns more than 11,400 properties across the U.S., Puerto Rico, Spain and the United Kingdom. It is a constituent of the benchmark S&P 500 index as well as the S&P Dividend Aristocrats index.

The company has raised its dividends 117 times since its initial public offering (IPO) on the New York Stock Exchange in 1994, meeting the 25 annual dividend hikes criteria in order to be included in the highly coveted S&P Dividend Aristocrats index.

Realty Income has paid 628 consecutive monthly dividends since 1994. Moreover, its total returns have risen at a compound annual growth rate (CAGR) of 15.1% over the past 28 years. If you had invested $10,000 during its IPO back in 1994, your total return on investment (provided you reinvested dividends) would have been higher than $500,000 today!

Annually, Realty Income stock pays $2.98 in dividends, yielding an impressive 5.13%. Its forward adjusted funds from operation (AFFO) yield stands at 6.96%. The company raised its monthly dividends by 5.1% year-over-year in June 2022. Furthermore, Realty Income distributed roughly 76.5% of its AFFO during the fiscal 2022 second quarter that ended in June.

Strong Financials

Despite the volatile macroeconomic backdrop, Realty Income has continued acquiring properties internationally. In the first half of 2022, the company invested more than $3.2 billion in high-end real estate across the United States and internationally. In fact, in the last quarter, Realty Income raised its acquisitions guidance to over $6 billion for fiscal 2022.

“Our second-quarter results demonstrate the stability of our business and the continued momentum in our global investment pipeline,” Realty Income President and CEO Sumit Roy said.

Realty Income’s real estate portfolio has remained strong despite the market fluctuations, as its occupancy rate stood at 98.6% at the end of the fiscal second quarter — the highest in 10 years. This marks a 40 basis-point increase in portfolio occupancy rate year-over-year. Also, the company exited the fiscal 2022 second quarter with a 105.6% recapture rate on releasing activity, reflecting its strong market position.

Robust Growth Ahead

Realty Income has focused on expanding its overseas portfolio for a while. To that end, the company recently raised its multicurrency revolving line of credit to $4.25 billion and its commercial paper program to $3 billion.

This follows the company’s acquisition of VEREIT Inc. last December, consolidating its position as a leading net lease REIT.

“With the closing of the VEREIT merger, we believe our size, scale and diversification will further enhance many of our competitive advantages, accelerate our investment activities and enhance shareholder value for years to come,” Roy said in a press release.

Apart from projected inorganic growth, Realty Income is also restructuring its existing portfolio to boost rental income. In the first half of 2022, the company raised its annual new rent on re-leases by 5.8%.

Bottom Line

With a potential recession knocking on the door, stable dividend income has become one of the priorities of retail and institutional investors alike. The monthly dividend stock might be one of the best REITs to invest in this month as the market backdrop becomes gloomier. Its historical performance and strong balance sheet should allow it to withstand an economic downturn with ease.

Read next: This Little-Known REIT Is Producing Double-Digit Returns In A Bear Market: How?

See more from Benzinga

This Multibagger Semiconductor Stock Has Sharp Upside Despite Capex Headwinds and US Embargo, Analyst Writes

What’s Going On With AMD Shares

China’s Semiconductor Industry ‘Decapitated Overnight’: What ‘Annihilation Looks Like’ – Applied Material

Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga does not provide investment advice. All rights reserved.



These 3 REITs Could See Dividend Increases Soon

In the midst of a bear market, with rising interest rates and the threat of a prolonged recession in the air, real estate investment trust (REIT) stocks have endured tremendous price declines. Given this, it isn’t easy to find REITs that could see dividend increases soon. Two questions come to mind. Why would a company raise its dividend when the yield is already increasing with each drop in price? And how do you find REITs with the dividend well-covered by funds from operations (FFO) and with s


How to Make $1,000 in Dividends Every Month

Dividends are the bread and butter of income investors. You don’t need to sell your assets or spend hours every day managing your accounts. Instead, dividend stocks simply generate income on their own. Putting together a portfolio that generates at least … Continue reading → The post How to Make $1,000 a Month in Dividends appeared first on SmartAsset Blog.


2 Dividend Stocks Under $10 With at Least 10% Dividend Yield

Making investments pay out for the long term is the true challenge in today’s market environment. The series of headwinds piling up – from persistently high inflation to rising interest rates to slowing demand to bureaucratic bloat – are rising to hurricane force, and renewing investors’ attention to defensive stocks. It’s only logical. The classic defensive stock, the dividend payer, ensures an income stream no matter how the markets move, and if the yield is high enough, these stocks can also

Motley Fool

Are I Bonds Always a Good Buy?

In that scenario, if you’re looking for a safer investment than stocks, you may be better off putting money into corporate bonds (which are bonds issued by companies) or municipal bonds (which are bonds issued by states, cities, and other localities). You may be inclined to develop an investing strategy that revolves around I bonds.

Associated Press

New report: A record 4.7 million Haitians face acute hunger

A record 4.7 million people in Haiti are facing acute hunger, including 19,000 in catastrophic famine conditions for the first time, all in a slum controlled by gangs in the capital, according to a report released Friday. The U.N. World Food Program and Food and Agriculture Organization said unrelenting crises have trapped Haitians “in a cycle of growing desperation, without access to food, fuel, markets, jobs and public services, bringing the country to a standstill.” The Cite Soleil district of the capital, Port-au-Prince, where violence has increased as armed gangs vye for control, is facing the most urgent need of humanitarian assistance, they said.

The Stock Market’s Rebound Fizzled Again. Why a Real Bottom Could Form Soon.

Investors seemingly can’t stop trying to pick a stock market bottom, no matter how bad the news—and it continues to backfire. Consider: This past Thursday, September’s consumer inflation report came in much hotter than expected, with the core CPI hitting a 40-year high. The initial response was exactly what you’d expect—the traded down as much as 2.4%—but then it started rallying…and rallying.

The Hill

Inflation report is bad news for Democrats

Thursday’s report showing that inflation jumped higher than expected in September and that prices remain at a 40-year high comes at a bad time for Democrats, who are battling to hang onto their Senate majority and are expected to lose control of the House. Democratic senators had expressed hope throughout this year that inflation…


Time to Bottom Fish? 3 ‘Strong Buy’ Stocks That Are Down Over 40% This Year

Everyone is hoping the market might be bottoming and by the recent actions of Bank of America clients, some evidently think the lows must be in sight. Last week, BofA customers splashed out $6.1 billion on US stocks, in what amounted to the third largest inflow since 2008. While the bank has stated it is not as confident the bottom is quite so close, it’s not hard to see why investors feel the time is right to lean into equities. The widespread losses have left scores of beaten-down stocks looki


Inflation at 8.2%: 2 ‘Strong Buy’ Dividend Stocks to Protect Your Money

Last month, the Federal Reserve implemented its fifth straight interest rate hike this year, and its third consecutive hike at 75 basis points, bringing its key funds rate up to the 3% to 3.25% range. The move showed that the central bank is deadly serious about taking on the stubbornly high inflation that has been plaguing the economy since the middle of 2021. The Fed’s turn toward an aggressive anti-inflationary policy may not be hard enough, however, as the September data, released this morni

Inflation Was Terrible. Here’s Why the Market Rallied.

The stock market took it literally on Thursday with a massive rally following an inflation reading that everyone agreed was way too hot. The CPI rose 0.4% in September, up from 0.1% in August, and above estimates for 0.2%. Core consumer prices, which don’t include food and energy, rose 0.6%, above forecasts for 0.4%, and unchanged from August.

Motley Fool

Nasdaq Bear Market: 5 Colossal Growth Stocks You’ll Regret Not Buying On the Dip

Things have been even worse for the technology stock-driven Nasdaq Composite (NASDAQINDEX: ^IXIC). Historically, every double-digit percentage decline in the major U.S. stock indexes, including the Nasdaq, has eventually been placed in the rearview mirror by a bull market rally. This makes every bear market a surefire buying opportunity for patient investors.


Oil Rises on Bullish Supply Cues as Markets Mull Inflation Data

(Bloomberg) — Oil rallied for the first time this week after a US crude report flagged potential bullish drivers, momentarily shrugging off hotter-than-expected inflation data.Most Read from BloombergStocks Surge in Wild Ride After CPI Data Selloff: Markets WrapCore US Inflation Rises to 40-Year High, Securing Big Fed HikeWorld Faces New Threats From Fast-Mutating Omicron VariantsKroger Wants to Merge With Albertsons to Create US Grocery GiantIntel Is Planning Thousands of Job Cuts in Face of P

The AV Club

Darren Aronofsky wants everyone to know he pitched a R-rated Batman film 15 years ago

Though gritty and morbid comic book adaptations feel commonplace at this point—especially within the world of Gotham—Darren Aronofsky shares he pitched a R-rated Batman feature years before they became the norm for superheroes. Though it never came to fruition, The Whale director penned a script for Batman: Year One with the renowned Frank Miller before Christopher Nolan took the reins of the franchise.

8 Mining Stocks: Why Their Long-Term Outlook Is Bright

Previous article

Stocks are giving some clues that there could be a Republican congressional sweep, Strategas says

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Trading News