Earn a 5.2% Yield From Home Depot and Lowe's Using This Hack

Home Depot HD and Lowe's LOW are the world's largest home improvement retailers, and their stocks have created fortunes for early investors. With the high-growth days in the rearview mirror, Home Depot and Lowe's fit the bill more as value and dividend stocks today. However, Home Depot yields just 2.3% and Lowe's yields just 1.8% at the time of this writing – not all that exciting.

But, did you know there's a hack you could use to earn a 5.2% yield from both Home Depot and Lowe's? The hack is investing in one of Home Depot and Lowe's largest landlords.

Let's check it out.

Agree Realty Corporation

Agree Realty Corporation ADC owns and manages a portfolio of 2,135 properties across 49 states containing approximately 44 million square feet of gross leasable space. It counts world-class retailers such as Home Depot, Lowe's, Walmart, McDonald's, Starbucks, CVS, Walmart, ULTA, Target, and Costco as tenants.

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Home Depot and Lowe's are both listed in Agree Realty's list of its 20 largest tenants in its most recent investor presentation, equating to a combined 4.1% of Agree Realty's annualized base rent.

So, by owning Agree Realty, you can generate monthly income that is partially attributable to Home Depot and Lowe's.

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% today.

On top of having a high yield, Agree Realty is a dividend-growth star. It has raised its annual dividend payment for 11 consecutive years, and it's already on track for 2024 to mark the 12th consecutive year with an increase.

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