NNN REIT

NNN

Market cap $7.85B

Fears about retail REITs have proven overblown. Realty Income gets about 80% of its rent from retail properties.

Investors are faced with an increasingly challenging and uncertain market environment in which to deploy capital. I detail where I think the best risk-adjusted place to invest today is. I share two compelling investments in the current environment that pay attractive dividends.

Several high-quality companies currently offer dividend yields of 5% or higher. These companies back their payouts with healthy financial profiles.

ECC offers maximum cash flow today for higher risk. NNN offers smaller cash flow with steady dividend growth. A 50/50 mix of ECC and NNN provides higher returns with less volatility.

NNN REIT remains a long-term buy despite tenant headwinds, with a solid Q3 and a well-covered 6% dividend yield. NNN's recent occupancy dip to 97.5% is seen as temporary, with management expecting a rebound above 98% by year-end as vacancies are resolved. NNN raised full-year guidance, increased acquisition targets, and continues to generate strong free cash flow, supporting its Dividend Aristocrat status.

Realty Income's monthly dividend payout is battle-tested. NNN REIT is a slow-and-steady giant you can trust.

REITs are attractive now as inflation stabilizes and interest rates are expected to fall, boosting sector appeal and yield spreads. A rigorous screen identifies 37 equity REITs yielding 4.75%-plus and at least 20% undervalued. The list is then narrowed by forward revenue growth, dividend safety, and balance sheet quality to identify 13 Buried Treasures.

Most asset classes are not offering any discounts this Black Friday. REITs are the exceptions, with many offering up to 50% discounts. But possibly not for much longer. Here is why this could be your last chance to secure these bargains.

NNN REIT has a diversified portfolio of over 3,600 single-tenant net lease properties, providing stable, visible cash flows and a 5.9% yield. NNN benefits from fixed annual lease escalators, a large acquisition pipeline, and a strong BBB+ credit rating supporting future growth. Despite tenant risks, NNN's reliable, growing dividends make it a compelling long-term holding for income-focused portfolios.

If you have spent the better part of 2025 enjoying having your cash just earning interest or stuck in low-yield funds that felt very safe, it might be time to rethink your income strategy.