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Is This Real Estate Investment Trust's 11%-Yielding Dividend in Danger After a Major Tenant Defaulted?

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If you're looking at an investment that yields more than 10%, you know that there's likely going to be some risk involved with it. A yield that high and that safe would be quickly scooped up by income investors.
The article discusses concerns over the sustainability of the high dividend yield from Realty Income Corporation (O), a real estate investment trust (REIT), following the default of one of its major tenants, Sainsbury's, a UK supermarket chain. Sainsbury's defaulted on a lease for a property in the UK, which has raised questions about the stability of Realty Income's income stream, especially since the company has been expanding internationally. Despite this, Realty Income has a diversified portfolio with over 13,000 properties and a 99% occupancy rate, suggesting that the impact of one tenant's default might be mitigated by its broad tenant base. However, the article notes that the high yield of 11% could be at risk if more tenants face financial difficulties, particularly in an environment of rising interest rates and economic uncertainty. Realty Income has reassured investors by stating that the default is an isolated incident and that they are actively managing their portfolio to minimize such risks.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/savingandinvesting/is-this-real-estate-investment-trust-s-11-yielding-dividend-in-danger-after-a-major-tenant-defaulted/ar-AA1xasdd ]