Amazon and Realty Income Emerge as Long-Term Investment Prospects Amid Low Valuations
Realty Income and Amazon are two stocks that stand out for their long-term potential. Realty Income, a real estate investment trust (REIT), has been providing high-yield dividends since its inception in 1994, marking the 32nd consecutive year of dividend increases.
The company owns over 15,500 properties leased to customers across various industries, with leases typically lasting at least 10 years. This diversification and selective process contribute to Realty Income's reliability as a dividend payer, offering a high yield of 5.19%, more than five times the S&P 500 average.
Meanwhile, Amazon is trading at its lowest valuation in over a decade, with concerns about its high capital expenditure beginning to subside due to its surging backlog and sales momentum in its Amazon Web Services division.
The Motley Fool's Stock Advisor team has identified the top 10 stocks for investors to consider, but Realty Income was not included. The team notes that their past recommendations have outperformed the S&P 500, with average returns of 958% compared to the index's 212% over a specific period.