Wall Street expects this REIT to grow by 10.3% annually over the next five years. The REIT has a current dividend yield of 3.93%, paid quarterly.
National Retail Properties, Inc. (NNN)
From Contrarian Outlook
National Retail Properties, Inc. (NNN) might not seem like the best shield against international mayhem. After all, it owns retail stores, and don’t retailers need Chinese supply chains to keep the registers ringing? And what about Amazon?
I can knock off both worries with this:
That list is dominated by businesses that are either health- or entertainment-focused (restaurants, gyms and movie theaters) or sell things people need to buy daily, no matter what, such as 7-Eleven and Sunoco.
Three other things that stabilize NNN: long lease terms (from 10 to 20 years, with a weighted average of 11.2 years remaining); nearly full occupancy (99% in the latest quarter); and steady dividend hikes. NNN’s payout has nicely paced its stock higher in the last decade:
If you’d bought NNN a decade ago, that strong dividend growth would have you yielding 9.7% on your original buy today (because you calculate your yield on cost by dividing the current yearly payout by your purchase price). That’s nearly triple the REIT’s current yield.
Brett Owens, Contrarian Outlook, BNK Invest Inc., 500 North Broadway, Suite 265, Jericho, NY 11753 USA, 516-620-4294, info@bnkinvest.com, February 25, 2020