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Realty Income Corporation – Best Retail Stocks For 2021

Realty Income Corporation – Best Retail Stocks For 2021

Some investors fear when they hear the word retail. It is true that the pandemic disproportionately affected retail businesses more than some other businesses. After all, retail businesses are driven by footfalls and the presence of people. With lockdown and shelter-in-place guidelines for months in 2020, the retail businesses faced a pretty challenging time for a few months. Interestingly, even other businesses that catered to the retail industry also had to face some heat. We are talking about companies that supply to retail businesses, companies that lease out commercial space, and other such related entities. However, with vaccinations now having reached a large majority of people and the number of daily cases subsiding as well, people have begun to step out. So, if you are thinking about leveraging the rebound trend, then some of the best retail stocks of 2021 would be a good place to begin your due diligence.

Realty Income’s Business Prospects

Realty Income Corporation claims that it invests in places and people to generate income that pays out a monthly dividend. It calls these monthly dividends dependable and something that grows with time. Realty Income Corporation is a real estate investment trust. In fact, it aspires to be among the top 5 REITs in the US. It is currently an S&P 500 company and one of the members of the prestigious Dividend Aristocrats Index compiled by S&P. Realty Income manages a portfolio of more than 7000 properties which gives it tremendous scale and presence across many regions of the US. The high number of properties also presents Realty Income with rich data that can be used for analytics and better decision-making. Some of the largest tenants of Realty Income include American heavyweights like Walmart, Starbucks, and Walgreens. The international clients of Realty Income include well-known retailers like Sainsbury’s and Carrefour. If you are looking for the best retail stocks for 2021, then consider looking at REITs that are in the retail space.

Best Retail Stocks Of 2021

One good thing about investing in REITs is that they offer a somewhat low correlation with the broader equity markets. The good thing about Realty Income is that it offers a low beta in addition to a relatively lower correlation. The beta for Realty Income as of November 2021 was 0.46.


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