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.

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.

While we acknowledge the potential of ADC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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