Realty Income stock struggling but diversification and potential rate cuts may lead to improvement

Realty Income’s stock has struggled over the past five years, down over 13%, despite positive total returns from dividends. The company focuses on stand-alone retail properties and uses long-term triple net leases. Recent diversification into industrial, data center, and gaming spaces has helped offset challenges from rising interest rates. Some retail tenants, like Red Lobster and Walgreens, are facing difficulties, but the REIT’s strong dividend coverage remains intact. With expectations of the Fed lowering rates, Realty Income’s stock is poised for better performance in the next five years.

Investors should monitor Realty Income’s stock as the company navigates current tenant issues and benefits from potential rate cuts. The company’s consistent dividend increases and potential for steady stock price growth make it an attractive investment option for the future. Consider other top stock picks identified by The Motley Fool Stock Advisor analyst team for potential high returns in the coming years.

Read more at Nasdaq: Where Will Realty Income Stock Be in 5 Years?