Building Wealth the Easy Way: Focus on High-Yield Stocks
When it comes to investing, many people focus on capital appreciation, but they’re missing out on a crucial aspect of building wealth: dividends. By reinvesting dividends, investors can slowly and steadily build wealth over time. Two high-yield stocks that stand out are Realty Income (NYSE: O) and Vici Properties (NYSE: VICI).
The Power of Dividends
Since the creation of the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) in 1993, the share price has risen approximately 1,250%. However, when you add in dividends, the total return jumps to over 2,300%. This highlights the importance of dividend reinvestment in building wealth.
Realty Income: A Reliable High-Yielder
Realty Income boasts a dividend yield of around 6% and has increased its dividend annually for three decades at an average annualized rate of over 4%. This translates to a total return of around 10%, comparable to the broader market. With an investment-grade-rated balance sheet and a diverse portfolio spanning the US and Europe, Realty Income is an attractive option for investors seeking steady wealth growth.
Vici Properties: A Young but Promising REIT
Vici Properties may not have the same track record as Realty Income, but its average remaining lease length of 41 years and inflation-linked rent increases provide a solid foundation for growth. With an investment-grade-rated balance sheet and a focus on experiential assets, Vici Properties offers a compelling opportunity for investors seeking high yields.
The Benefits of High-Yield Stocks
Both Realty Income and Vici Properties offer a relatively easy way to build wealth, with minimal effort required from investors. By reinvesting dividends, investors can take advantage of compounding and enjoy steady returns over time. These high-yield stocks may not be the most exciting options, but they provide a reliable source of income and wealth growth.
Don’t Miss Out on Opportunities
If you’re looking for opportunities to build wealth, consider Realty Income and Vici Properties. These high-yield stocks offer a relatively low-risk way to grow your portfolio over time. And, with the right investment strategy, you can take advantage of compounding and enjoy significant returns.
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