Realty Income: 19,120 euros for 1,000 euros in dividends? Analysis by a financial expert

Realty Income: 19,120 euros for 1,000 euros in dividends? Analysis by a financial expert

According to a report by www.aktienwelt360.de,

Yes, you read that right: If you buy 1,000 euros from the shares ofReal Estate Income(WKN: 899744) per year, you would have to invest 19,120 euros in the share. The math behind it is actually relatively simple. If we divide the 1,000 euros by the current 5.23% dividend yield and multiply the resulting value by 100, that gives us... well, you can guess three times.

But finding the answer to this question is not the actual construction site. As an income investor, we should consider whether we should invest such an amount in the dividend stock. As well as what the vulnerabilities and opportunities are with the newly created values.

Real impact on the market

Calculating that 19,120 euros are required for a 1,000 euro dividend clearly shows that a significant amount is required for such a return. This could lead potential investors to look for alternatives and move into other asset classes that may offer a higher return relative to the amount invested.

Impact on the consumer

For the average consumer looking for passive income opportunities, the realization that a significant investment is required to achieve a given dividend yield could cause them to rethink their investment strategy and consider other options.

Industry impact

Disclosure of this calculation could have an impact on the real estate investment trust (REIT) market. Potential investors could shift away from REITs and divert their capital into other investment options, which could affect the dynamics and profitability of the REIT market.

The conclusion of the article emphasizes that althoughReal Estate Incomeis high quality and offers stable dividends, the significant investment required to achieve a given dividend yield, highlights potential risks and vulnerabilities. This could cause potential investors to rethink their investment strategy and look for alternative options.