NNN Stock Recent News

If you are looking for generous yields and reliable dividends, this trio of dividend stocks has you covered, with yields up to 5%.

ORLANDO, Fla. , Oct. 15, 2024 /PRNewswire/ -- The Board of Directors of NNN REIT, Inc. (NYSE: NNN), a real estate investment trust, today announced a quarterly dividend of 58 cents per share payable November 15, 2024 to shareholders of record as of October 31, 2024.

We are changing our recommendation for NNN from a buy to a hold due to expected mean reversion in investment spreads. The current 117-basis points of investment spread will probably narrow as the sector adjusts to a new interest rate regime. The forward AFFO yield of 7.02% is below our hurdle rate of 7.54% for the sector.

NNN REIT, Inc. is a well-managed REIT with a 99.3% lease rate, strong dividend coverage, and a history of dividend increases over 35 years. The trust's portfolio is diversified with long-term leases, minimal short-term expirations, and a low dividend payout ratio of 68%, ensuring dividend safety and growth. With an AFFO multiple of 14.3x and a 5% dividend yield, NNN is attractively valued compared to peers like Realty Income.

These REITs have quietly done a fantastic job increasing their dividends over the years.

As the legendary investor John D. Rockefeller once said, 'Do you know the only thing that gives me pleasure? It's to see my dividends coming in?' NNN REIT boasts a 6.98% dividend yield, 34 consecutive years of dividend increases, and a focus on retail properties with triple-net leases. Realty Income offers a 4.99% dividend yield, 29 years of rising dividends, and a diversified portfolio with a conservative triple-net lease model.

Hurricane Helene caused significant flooding in Ashville, NC, and Atlanta, GA, impacting numerous REIT-owned properties, but the financial impact on REITs is likely less severe than it appears. REITs typically experience knee-jerk selloffs after property damage announcements, but these are often over-reactions and tend to reverse over time. Most REIT-owned properties are durable and well-insured, mitigating long-term financial impacts, though insurance rates may rise, affecting future expenses.

I have been bullish on NNN REIT since mid 2023, where since then it has produced ~ 20% in total returns. Now, looking at NNN we can see a compelling entry point in terms of the valuations relative to other closest peers such as O, ADC and EPRT. However, peeling back the onion a bit, we will also identify some reasons why the discount could be justified.

NNN REIT has increased its dividend for 35 straight years. It shares many similarities with Realty Income.

NNN REIT offers a balanced portfolio with a 4.97% dividend yield, combining high-quality and speculative tenants, ensuring sustainable long-term returns. NNN's diversified tenant mix and high occupancy rate (99.3%) provide stability, with a 35-year history of consecutive dividend increases. Despite sector risks, NNN's relationship-based acquisitions and solid capital allocation support a sustainable shareholder value generation.