1,000 euros on hand? 2 Top Yield Aristocrats You Can’t Go Wrong With ()

You have 1,000 euros on hand and want to invest it in a top dividend aristocrat? This is not a wrong approach. A regular, moderately growing passive income can be a means of generating a solid, long-term return.

I think the two shares Fresenius (WKN: 578560) and Property income (WKN: 899744) shouldn’t be a major bug now. Investors looking for can certainly take a closer look here. Or maybe even invest if the current conditions suit you.

Top Dividend Aristocrat Realty Income: Not too expensive

The first top dividend aristocrat we want to look at is Realty Income. The general investment thesis should be familiar to many income investors. As a REIT, at least 90% of profits are paid out in dividends, and management has built a portfolio of 11,700 units of real estate. That, combined with triple net leases that largely pass on windfalls to tenants, is a strong base.

Realty Income’s fundamental valuation is also right at the moment. Based on a share price of $63.57, the price-to-FFO ratio is around 16. It also has a yield of around 4.7%, which is neither expensive nor cheap. The conclusion is that we get a lot of quality at a fair price.

For the supreme dividend aristocrat, it is important that there is growth going forward. But it is also possible. Recently, same-store sales have increased in the low to mid-single digits. In addition, Realty Income management consistently makes additional purchases. Larger properties such as casinos can now also be considered, each of which should already be significant for funds from operations. With an ownership stake of EUR 1,000, there is currently a gross dividend of almost EUR 4 per month. This can be a solid start.

Fresenius: The market is not optimistic

The other top dividend aristocrat that the market is not so optimistic about right now is Fresenius. Behind the name stands a healthcare company from DAX, which is currently disappointing on many fronts. For example in operational growth and in particular in business areas such as medical care.

But what is the denominator to settle on as an income investor? To me, that’s still a yield of around 3.5%, a dividend that grows every year (so far), and a payout ratio of 28% in FY 2022. Even if that number were to rise to 35% due to declining earnings per . stock, it would in reality be neither threatening.

We therefore actually see a solid value proposition in the Fresenius share. A PER below 10 and a P/E well below 0.5 also show how cheap the current valuation actually is. Operationally, it is not in top shape. But we can certainly see a solid value proposition in the best Dividend Aristocrat out there with an attractive dividend at the moment.

The article 1,000 euros at hand? 2 Top Dividend Aristocrats You Can’t Go Wrong With appeared first on The Motley Fool Germany.

Our best stock for 2022

There’s one company whose name is getting a lot of buzz from analysts at The Motley Fool these days. It’s for us THE best investment for 2022.

You could also benefit from that. To do this, you must first know everything about this unique company. So now we have one free special report prepared which introduces this company in detail.

Click here to download this report now for free.

Vincent owns shares in Fresenius and Realty Income. The Motley Fool recommends Fresenius.

Motley Fool Germany 2022

to the original message

Leave a Comment