If there is a case for real fundamentals of real estate investment trust, then it has to be this REIT over here.
Realty Income is a very old REIT which purchases commercial real estate for cash leased to tenants that have a good business and track record.
The leases are typically for 15 to 20 years, which provides us with dependable lease payments each month that are used to support the monthly payments to shareholders.
The company have paid a monthly dividend for 43 years.
Since 1994, the company have increase dividends 72 times and have increase quarterly payouts 63 times in a row.
That is really some record and goes to show with a falling interest environment what cheap money can help.
The record in 2008 and 2009 is a fine testament of the long lease defensiveness.