Time to Buy National Retail Properties yet? Why only one CAPS star?
National Retail Properties (NNN) pulled back roughly10% from its September high. It yields 7.3% and has adequate FCF to support its dividend, which has grown every year for the past 10 years (source: S&P reports). It's rated a Buy by TheStreet.com and has outpaced the S&P500 by roughly 15% over the past year, not including dividends (source: eyeballing charts on TDAmeritrade.com and yahoo/finance).
TheStreet.com ranks NNN in the top 20% of all companies they cover on growth, the top 10% on income, and the upper 40th percentile on solvency (source: The Street.com company report). NNN also has a good story, specializing in leasing to single tenant and convenience store retailers. Although REITs bear risks, NNN has weathered the storm and looks attractive for dividends and (to a lesser extent) growth.
Can anyone, perhaps someone who is betting against NNN or perhaps a dividend investor, explain why the lowly "one star" ranking for this attractive-looking, income-producing, well-regarded steady performer?
I am long NNN and, unless the fundamentals change, I am going longer as it goes lower.