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Another benefit to owning Realty Income is that its 15,400+ portfolio of properties is spread across North America and Europe. It owns both retail assets (73% of rents) and industrial assets (17%), with a fairly large “other” category (which includes things like casinos and vineyards) rounding things out. Basically, it has multiple levers to pull when it comes to growing its business over time. Given its size, it’s a slow and steady tortoise, but a very reliable one, too.

NNN REIT is a bit more focused, only owning around 3,500 retail properties in the U.S. However, it has increased its dividend every year for an even more impressive 35 consecutive years. The dividend yield today is around 4.8%, which is comfortably above the REIT average, too, though slightly lower than Realty Income’s yield. What sets NNN REIT apart from the pack is its relationship-driven model.

Since 2007, roughly 72% of its acquisitions were from sellers with which it already had a relationship. Perhaps more surprisingly, the returns on these investments were higher than the returns on assets NNN REIT bought on the open market. This is because its existing partners know that they can go to NNN REIT and get a deal done quickly. They’re willing to pay a higher price for the certainty that NNN REIT offers, and shareholders get to benefit from the solid and growing income stream these relationships create over time.

The problem child here is W.P. Carey, which has the highest yield at 5.9%. This is at least partly because the net lease REIT cut its dividend at the start of 2024, just shy of reaching 25 years of consecutive annual dividend increases. But don’t throw W.P. Carey off your list. The dividend cut was really a dividend reset as the second largest net lease REIT (its market cap is around $13 billion) exited the troubled office sector.

Its exposure to office was roughly 16% of rents, so it couldn’t leave the sector without a dividend reset. The important fact here is that the dividend got right back onto the quarterly increase cadence that existed before the cut. The much larger dividend yield means you’re getting well paid for the added risk, which seems quite modest.

If you can look past the dividend reset, W.P. Carey’s business is kind of a mirror image of Realty Income’s portfolio. W.P. Carey operates in North America and Europe, but its nearly 1,300-property portfolio is tilted toward industrial assets at around 64% of rents, with retail at 21% and other at 15%. While it’s not quite as large as Realty Income, W.P. Carey’s office exit has left it with capital to invest. So growth prospects will likely be attractive in the near term and potentially better than what you’d get at Realty Income or NNN REIT.

Realty Income, W.P. Carey, and NNN REIT are the types of landlords that you can own and reliably collect dividends from year in and year out. Yes, W.P. Carey’s dividend history requires a bit of understanding. However, once you recognize that the REIT’s move has strengthened its future prospects, the view of that dividend reset changes (and the relatively high yield becomes much more attractive). Buy one of these REITs, or all of them, if you want to collect decades’ worth of income while you sleep soundly through the night.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,154!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,777!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $406,992!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of October 21, 2024

Reuben Gregg Brewer has positions in Realty Income and W.P. Carey. The Motley Fool has positions in and recommends Realty Income and Vanguard Real Estate ETF. The Motley Fool has a disclosure policy.

Buy These 3 High-Yield Dividend Stocks Today and Sleep Soundly for a Decade was originally published by The Motley Fool

Most stocks offer high yields or growth, but the Schwab U.S. Dividend Equity ETF offers surprisingly strong growth, considering its high starting yield. As shown below, the ETF has raised its dividend by 174% over the past decade.

You won’t find many individual stocks with that combination of yield and sustained dividend growth!

The Schwab U.S. Dividend Equity ETF isn’t perfect. It has lagged behind the S&P 500 in total returns over the past decade, primarily because it doesn’t have the exposure to big technology companies that the S&P 500 does. These multitrillion-dollar technology companies have grown on cloud and artificial intelligence opportunities and have helped lift the broader market. I would argue that the Schwab U.S. Dividend Equity ETF has competed very well, given the lack of technology exposure, and you’re probably buying the ETF for the higher dividends, not purely for total returns.

It’s not the perfect ETF for every investor, but it’s hard to find a more well-rounded ETF than the Schwab U.S. Dividend Equity ETF. Any long-term dividend investor should consider adding and holding shares over time, building a snowball of dividends that pays you more and more as it grows larger.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $20,991!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,618!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $406,922!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of October 21, 2024

Justin Pope has positions in Chevron. The Motley Fool has positions in and recommends Bristol Myers Squibb, Chevron, Cisco Systems, and Home Depot. The Motley Fool recommends Lockheed Martin, United Parcel Service, and Verizon Communications. The Motley Fool has a disclosure policy.

1 High-Yield Dividend Growth ETF to Buy With $30 and Hold Forever was originally published by The Motley Fool

TSMC’s outstanding growth was driven by the growing demand for the company’s advanced  chip nodes, which are 7-nanometer (nm) or smaller in size. More specifically, the advanced-process nodes produced 69% of its total revenue as compared to 59% in the year-ago period. What’s worth noting here is that TSMC’s 3nm node accounted for 20% of its top line in the previous quarter as compared to just 6% in the year-ago quarter.

This can be attributed to the arrival of the latest generation of Apple’s iPhones, which sport a 3nm processor manufactured by TSMC. Looking ahead, the company’s 3nm process node should continue to witness stronger adoption as next-generation AI chips from Nvidia, AMD, and Intel are expected to be manufactured using this platform.

What’s more, TSMC is pushing the envelope further as it is currently developing its 2nm technology, which is expected to go into production next year. So, TSMC will have an additional advanced node to sell to customers, and it won’t be surprising to see the 2nm process becoming another solid-growth driver for the company.

That’s because chips manufactured using a smaller-process node pack more transistors into a smaller surface area and have higher-computing power and thermal efficiency. As a result, customers have been using TSMC’s advanced-process nodes to manufacture chips capable of delivering superior performance while keeping power consumption low.

With a market share of almost 62% in the global-semiconductor foundry space, which is well ahead of second-placed Samsung’s 11%, TSMC is in an outstanding position to capitalize on the secular growth of the semiconductor market in the long run. That’s precisely why its guidance for the current quarter is outstanding as well.

TSMC is expecting $26.5 billion in revenue in Q4 at the midpoint of its guidance range, along with an operating margin of 47.5%. Its top-line forecast points toward a potential increase of 35%, while the bottom line should also increase at a nice clip considering that TSMC’s operating margin stood at 41.6% in the prior-year quarter.

However, investors looking to construct a million-dollar portfolio would do well to focus on the company’s long-term growth potential as well.

The global-semiconductor market is expected to generate $1.47 trillion in revenue in 2030, up from $729 billion in 2022. Not surprisingly, the global-semiconductor foundry market is set to jump from $122 billion last year to $276 billion in 2033. We have already seen that TSMC is the dominant player in this space, but more importantly, the company has significantly expanded its addressable market of late by diversifying beyond the foundry space.

Under its new Foundry 2.0 business model, TSMC has moved into additional markets that include “packaging, testing, mass making, and others.” The company points out that this new model has increased its addressable market from $115 billion to $250 billion already. So, there is a solid chance of TSMC sustaining its impressive growth rates for a long time to come.

Analysts are expecting the company to finish 2024 with $89.3 billion in revenue, which would be a 28% increase from last year. The following chart indicates that TSMC would be able to sustain impressive growth for the next couple of years as well.

TSM Revenue Estimates for Current Fiscal Year data by YCharts.

However, the chart also shows that analysts have been bumping up their revenue estimates for TSMC, a trend that could continue because of the company’s expanded-addressable market and the secular growth of the foundry space over the next decade. That’s why investors would do well to buy this semiconductor stock right away as it is trading at an attractive 35 times trailing earnings and 25 times forward earnings, which makes it significantly cheaper than Nvidia.

Another thing worth noting is that TSMC stock has jumped over nine times in the past decade. It may get close to replicating such a performance in the future based on the points discussed above, which is why anyone looking to make a million-dollar portfolio should consider buying it before it soars higher.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,154!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,777!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $406,992!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of October 21, 2024

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.

Should You Buy This Millionaire-Maker Stock Instead of Nvidia? was originally published by The Motley Fool