Realty Income ( O -0.77% ) , one of the world's largest real estate investment trusts (REITs), is often considered a dependable dividend stock for conservative investors. But over the past three years, its stock declined about 23% as interest rates rose. Even with reinvested dividends, it delivered a dismal negative total return of 10%. Realty Income lost its luster for a few simple reasons. Rising rates made it more expensive to purchase new properties, and they made its dividends less attractive by driving up the yields of safer CDs, Treasury bills, and other fixed-income investments. Inflation and other macroheadwinds also throttled the growth of some of its top tenants. But as interest rates decline, will Realty Income's stock bounce back over the next three years? Let's review its near-term challenges and long-term catalysts to decide. What happened to Realty Income over the past few years? As a retail REIT, Realty Income purchases a lot of properties, rents them out to businesses, and splits the rental income with its investors. It also needs to distribute at least 90% of its pre-tax income as dividends to maintain a favorable tax rate. Realty Income owns 15,457 properties across the U.S., U.K, and Europe. It mainly leases its properties to recession-resistant retailers, and its top tenants include Dollar General (NYSE: DG) (3.3% of its annualized contracted rent in its latest quarter), Walgreens (NASDAQ: WBA) (3.3%), Dollar Tree (NASDAQ: DLTR) (3.1%), and 7-Eleven (OTC: SVNDY) (2.5%). Some of those tenants -- including Walgreens and Dollar Tree -- have been struggling with store closures over the past few years. Yet Realty's occupancy rate has never dipped below 96% since its initial public offering (IPO) in 1994. That metric also stayed above 98% over the past four years as the growth of its stronger tenants (like Dollar General) offset the issues at its weaker tenants. It also continued to grow its adjusted funds from operations (AFFO) even after it acquired its smaller rival Spirit Realty and bought more properties. Metric 2021 2022 2023 9M 2024 Total Properties 11,136 12,237 13,458 15,457 Occupancy Rate 98.5% 99% 98.6% 98.7% AFFO per share $3.59 $3.92 $4.00 $3.14 Data source: Realty Income. For the full year, Realty Income expects its occupancy rate to remain above 98% and for its AFFO per share to grow 4% to 5%, or $4.16 to $4.21. At $53, Realty's stock trades at less than 13 times the midpoint of that forecast. It also pays a forward dividend yield of 6%. It pays those dividends monthly, and it's raised its payout 128 times since its IPO. What will happen to Realty Income over the next three years? Realty Income's low valuation, high yield, and stable growth should limit its downside potential. However, its upside potential could be limited by elevated interest rates and other macroheadwinds over the next three years. The Fed cut interest rates three times in 2024, but it only expects two rate cuts in 2025. That cautious outlook suggests inflation hasn't been tamed yet, and President-elect Trump's plans to raise tariffs on products from China, Canada, and Mexico once he takes office could exacerbate that pressure. That's why Realty Income and many other leading REITs slumped after the presidential election in November. Yet Realty Income's scale and diversification helped it weather plenty of economic headwinds over the past three decades. It's also been expanding beyond its core market of retail and industrial customers by gaining more data center and gaming tenants. So as long as it keeps buying new properties, maintains a high occupancy rate, and grows its AFFO per share, its stock should bounce back over the next three years. Realty's AFFO per share grew at a compound annual growth rate (CAGR) of 5.7% from 2020 to 2023. Assuming it maintains the same valuation and grows its AFFO per share at a CAGR of 5% from 2023 to 2027, its stock price could rise 20% to $63 by the final year. It should also continue to raise its monthly dividends several times every year. Realty Income and its peers might remain out of favor until there's more visibility into the Fed's future rate cuts and Trump's economic plans, but it's still a great stock to buy and hold for investors who need reliable dividend payments every month.Renewable energy trounces nuclear on generation costs
Ray Fittipaldo's Steelers report card: Splash plays by defense, special teams point way to victory against Browns - Pittsburgh Post-GazetteClean Energy Technologies ( NASDAQ:CETY – Get Free Report ) and Cheniere Energy Partners ( NYSE:CQP – Get Free Report ) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability. Analyst Ratings This is a breakdown of recent ratings for Clean Energy Technologies and Cheniere Energy Partners, as provided by MarketBeat. Cheniere Energy Partners has a consensus target price of $50.50, indicating a potential downside of 5.59%. Given Cheniere Energy Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Cheniere Energy Partners is more favorable than Clean Energy Technologies. Insider and Institutional Ownership Earnings & Valuation This table compares Clean Energy Technologies and Cheniere Energy Partners”s revenue, earnings per share and valuation. Cheniere Energy Partners has higher revenue and earnings than Clean Energy Technologies. Clean Energy Technologies is trading at a lower price-to-earnings ratio than Cheniere Energy Partners, indicating that it is currently the more affordable of the two stocks. Profitability This table compares Clean Energy Technologies and Cheniere Energy Partners’ net margins, return on equity and return on assets. Risk and Volatility Clean Energy Technologies has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Summary Cheniere Energy Partners beats Clean Energy Technologies on 11 of the 13 factors compared between the two stocks. About Clean Energy Technologies ( Get Free Report ) Clean Energy Technologies, Inc. designs, produces, and markets clean energy products and integrated solutions that focuses on energy efficiency and renewable energy in the United States. It operates through four segments: Clean Energy HRS and CETY Europe, CETY Renewables Waste to Energy Solutions, engineering and Manufacturing Business, and CETY HK. The company offers Clean Cycle, which generates electricity by recycling wasted heat produced in manufacturing, waste to energy, and power generation facilities. It also converts waste products created in manufacturing, agriculture, wastewater treatment plants, and other industries to electricity, renewable natural gas, hydrogen, and bio char. In addition, the company offers engineering, consulting, and project management solutions. Further, the company is involved in the sourcing and suppling of liquefied natural gas to industries and municipalities located in the southern part of Sichuan Province and portions of Yunnan Province. The company was formerly known as Probe Manufacturing, Inc. and changed its name to Clean Energy Technologies, Inc. in November 2015. Clean Energy Technologies, Inc. was founded in 1993 and is headquartered in Irvine, California. Clean Energy Technologies, Inc. is a subsidiary of MGW Investment I Ltd. About Cheniere Energy Partners ( Get Free Report ) Cheniere Energy Partners, L.P., through its subsidiaries, provides liquefied natural gas (LNG) to integrated energy companies, utilities, and energy trading companies worldwide. The company owns and operates natural gas liquefaction and export facility at the Sabine Pass LNG Terminal located in Cameron Parish, Louisiana. It also owns a natural gas supply pipeline that interconnects the Sabine Pass LNG terminal with various interstate pipelines. The company was founded in 2003 and is headquartered in Houston, Texas. Cheniere Energy Partners, L.P. is a subsidiary of Cheniere Energy, Inc. Receive News & Ratings for Clean Energy Technologies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Clean Energy Technologies and related companies with MarketBeat.com's FREE daily email newsletter .
Seed of betrayal: Kenyatta, Odinga fallout that shaped Kenya's political scene
WASHINGTON (AP) — President Joe Biden said Sunday that the U.S. government believes missing American journalist Austin Tice, who disappeared 12 years ago near the Syrian capital, is alive and that Washington is committed to bringing him home after . “We think we can get him back," Biden told reporters at the White House, while acknowledging that “we have no direct evidence” of his status. "Assad should be held accountable.” Biden said officials must still identify exactly where Tice is after his disappearance in August 2012 at a checkpoint in a contested area west of Damascus. “We've remained committed to returning him to his family,” he said. Tice, who is from Houston and whose work had been published by The Washington Post, McClatchy newspapers and other outlets. A video released weeks after Tice went missing showed him blindfolded and held by armed men and saying, “Oh, Jesus.” He has not been heard from since. that it was holding him. The United States has no new evidence that Tice is alive, but continues to operate under the assumption he is alive, according to a U.S. official. The official, who was not authorized to comment publicly and spoke on condition of anonymity, said the U.S. will continue to work to identify where he is and to try to bring him home. His mother, Debra, said at a news conference Friday in Washington that the family had information from a “significant source,” whom she did not identify, establishing that her son was alive. “He is being cared for and he is well — we do know that,” she said. The Tice family met this past week with officials at the State Department and the White House. “To everyone in Syria that hears this, please remind people that we’re waiting for Austin,” Debra Tice said in comments that hostage advocacy groups spread on social media Sunday. “We know that when he comes out, he’s going to be fairly dazed & he’s going to need lots of care & direction. Direct him to his family please!”No. 1 South Carolina women stunned by No. 5 UCLA, 77-62, ending Gamecocks’ 43-game winning streak
Painstaking diplomacy and then anger at the climate talks4 Nations Confrontation : Patrik Laine expected to play for FinlandGeorge Kittle went into the San Francisco 49ers' Week 14 game with the Chicago Bears needing 77 receiving yards to reach 7,000 for his career. He achieved that feat and then some in a dominant first half for the 49ers, who led 24-0 after the opening two quarters. Kittle caught all five of his passes for 138 yards as the 49ers moved the ball with devastating ease in the first half. The latest milestone for the 49ers' All-Pro means he is now just the third tight end in NFL history to reach 7,000 receiving yards and 500 catches in his first eight seasons. Kittle joins Antonio Gates and Travis Kelce in the select group of tight ends to achieve that feat, furnishing an already tremendous resume that will have him firmly in the conversation for the Hall of Fame whenever he calls it a career. This article first appeared on A to Z Sports and was syndicated with permission.