Why Long-Term Investors Favor Agree Realty Corporation (ADC) in Dividend Stocks to Buy Under $100

Agree Realty Corporation (NYSE:ADC) is included among the 13 Best High Dividend Stocks to Buy Under $100.

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Agree Realty Corporation (NYSE:ADC) is an American real estate investment trust company. It specializes in owning single-tenant properties where tenants cover most of the operating expenses, a setup known as a net lease. For sellers, this type of arrangement functions much like a financing deal. REITs such as Agree benefit from these transactions because they secure long-term tenants, manage properties that require little effort on their end, and typically gain from built-in rent increases. These deals become profitable when the REIT’s cost of capital is lower than the returns generated by the properties.

Agree Realty Corporation (NYSE:ADC) places a strong emphasis on retail assets, which are generally uniform, making them easy to acquire, sell, or re-lease when needed. The company’s entire portfolio is concentrated in the US retail market. Agree’s relatively smaller scale has enabled the company to expand at a faster pace. A clear example of this can be seen in its dividend performance, which has increased by about 65% over the past ten years.

Agree Realty Corporation (NYSE:ADC) is one of the best dividend stocks under $100 as the company has raised its payouts every year since 2021. Moreover, the company pays monthly dividends to shareholders. Its monthly payout currently stands at $0.256 per share and has a dividend yield of 4.29%, as recorded on September 18.

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