Earn a 5.9% Yield from Dollar Tree Using This Hack

Dollar Tree DLTR has returned over 12,000% since its initial public offering in 1995, making it one of the best performing retailers over that period.

While its return has been nothing short of impressive, it's been off-limits for dividend and income investors its entire public life because it does not pay a dividend.

However, there’s a hack you can use to earn a 5.9% dividend yield, and that’s by investing in one of its largest landlords.

Here's how.

Don't Miss:

• Investing in real estate just got a whole lot simpler. This Dara Khosrowshahi-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000.

Realty Income Corporation

Realty Income Corporation O is the 7th largest global REIT with over 13,250 commercial properties in its portfolio and a world-class tenant base that includes Dollar Tree, as well as Walgreens, Dollar General, 7-Eleven, FedEx, LA Fitness, CVS, Walmart, and Tractor Supply.

Dollar Tree is listed as the third-largest client of Realty Income in its most recent investor presentation, equating to 3.3% of its annualized contractual rent.

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

Realty Income currently pays a monthly dividend of $0.2565, equating to an annualized dividend of $3.078 per share and giving it a yield of about 5.9% at the time of this writing.

On top of its high yield, Realty Income is a dividend aristocrat. It has raised its annual dividend every year since 1994, putting it on track for 2024 to mark the 30th consecutive year in which it has raised its annual dividend payment.

Read Next:

• Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. 
• Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.

Image Credit: Shutterstock