Earn a 5.2% Yield From Dollar General Using This Hack

Dollar General DG is one of the largest discount retailers in North America with nearly 20,000 stores. Its stock has provided sizable returns for early investors, but it's not an intriguing option for dividend and income investors as it yields just 1.5% at the time of this writing.

But, did you know there's a hack you could use to earn a 5.2% yield from Dollar General? The hack is investing in one of its largest landlords.

Here’s how.

Agree Realty Corporation

Agree Realty Corporation ADC owns and manages a portfolio of more than 2,100 properties across 49 states containing approximately 44 million square feet of gross leasable space. It counts world-class retailers such as Dollar General, Home Depot, Lowe's, Walmart, McDonald's, Starbucks, CVS, Walmart, ULTA, Target, and Costco as tenants.

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Agree Realty lists Dollar General as its third largest tennant in its most recent investor presentation, equating to approximately 4.8% of its annualized base rent.

So, by owning Agree Realty, you can generate monthly income that is partially attributable to Dollar General.

Agree Realty currently pays a monthly dividend of $0.247 per share, equating to an annualized dividend of $2.964 per share and giving its stock a yield of about 5.2% at the time of this writing.

In addition to being a high yielder, Agree Realty is a dividend grower. It has raised its annual dividend payment for 11 consecutive years, and it's on pace for 2024 to mark the 12th consecutive year with an increase.

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