You Can Do Better Than Nike. Buy This High-Yield Dividend Stock Instead.

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If you're inactive waiting for Nike (NYSE: NKE) to marque its long-awaited turnaround, you are apt precise disappointed successful the diversion deterioration company. Nike banal is down 33% truthful acold this twelvemonth and shows nary signs of righting the ship.

I'm arsenic diligent arsenic the adjacent guy, but it's hard to spot a holding suffer worth successful a downtrodden banal similar Nike has. Especially erstwhile determination are large options connected the array that person a agelong way grounds of performance. And erstwhile you adhd a 5% dividend yield, wherefore look immoderate further?

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Realty Income (NYSE: O) has agelong been my favourite high-yield dividend stock. Shares are up 11% truthful acold this year, but acknowledgment to Realty Income's famed monthly dividend (currently yielding conscionable implicit 5%), your full instrumentality from the existent property concern spot is simply a coagulated 15% truthful acold this year.

Let's look person astatine Realty Income, which conscionable announced its second-quarter net results connected Aug. 5.

Person buying  successful  a retail store.

Image source: Getty Images.

Realty Income's more-than-solid net

Realty Income is simply a REIT -- a specialized entity that holds commercialized existent estate, residential rental properties, oregon different types of existent estate. Congress approved REITs successful the 1960s to springiness retail investors entree to income-producing existent estate.

There are galore antithetic kinds of REITs, but Realty Income is classified arsenic a retail REIT. The institution owns much than 15,500 properties crossed 92 industries, leased to astir 18,000 clients. Realty Income's wide array of clients means it is comparatively immune to downturns affecting a circumstantial manufacture oregon company.

Realty Income besides operates nether nett lease agreements, which means tenants wage basal rent arsenic good arsenic astatine slightest immoderate of the operating expenses, specified arsenic taxes, insurance, and maintenance. The statement keeps Realty Income's expenses down, which successful crook benefits shareholders.

Grocery stores relationship for the largest attraction of Realty Income properties astatine 11.1%, but the institution besides has convenience stores, location betterment stores, dollar stores, restaurants, cause stores, and more. The company's portfolio occupancy complaint was 98.8% astatine the extremity of the 2nd quarter.

Earnings for the 2nd 4th were strong, arsenic gross of $1.547 cardinal was up 9.7% from a twelvemonth ago. Net income was $344 million, up from $196.9 million, and nett income per stock roseate from $0.22 to $0.37.

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