Better Dividend Stock for 2026: NNN or ADC? One Clearly Wins on Yield and Growth
Both NNN and Agree Realty cut identical deals with tenants, raised guidance the same summer, and dropped nearly the same amount in price last month, yet one of them suits a retiree's portfolio far better than the other.
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NNN REIT (NYSE:NNN) or Agree Realty (NYSE:ADC): which net lease landlord better suits someone investing for retirement right now? Both rent single-tenant retail buildings on triple-net leases, so the tenant pays taxes, insurance and maintenance. Both also raised full-year guidance this summer. Over the past month NNN fell 9.39% and Agree fell 9.04%, so both now cost less to buy, and the gap between what each pays has gotten wider.
Dividend: NNN Pays More and Has Paid Longer
At $40.44, NNN’s forward dividend of $2.48 a year works out to a 6.1% yield. Agree pays $3.204 a year on a $65.70 share price, a yield of 4.9%.
Measure REIT dividend safety with AFFO (adjusted funds from operations). Depreciation on buildings reduces a REIT’s net income even though no cash leaves the business, so a payout ratio based on earnings tells you nothing useful. On AFFO, both look about equally safe. NNN’s new rate equals a 69% AFFO payout ratio. Agree paid out 70% of AFFO in the second quarter.
NNN has the longer record. NNN’s July raise to $0.62 a quarter marked its 37th consecutive year of annual dividend increases. Its payment history shows the quarterly rate rising from $0.31 in 1999. Agree pays monthly.
Its $0.267 monthly payment is up 4.3% year over year, and it has raised the dividend each year since its IPO. Monthly payments only started in 2021. Winner: NNN.
Tenant Quality: Agree Owns the Stronger Roster
Agree reports a company-record occupancy of 99.8% across 2,825 properties. Investment-grade tenants make up “nearly two-thirds of our portfolio”, and ground leases supply over 10% of annualized base rents. Its second-quarter purchases included Walmart (NASDAQ:WMT | WMT Price Prediction) Supercenter and Home Depot (NYSE:HD) ground leases, with over 73% of the rent coming from investment-grade retailers.
NNN’s occupancy is 99.1% with a 10.1-year weighted average lease term, and 97% of ABR (annual base rent) has rent increases built in. NNN signs longer leases on new purchases: 17.9 years in the second quarter, compared with Agree’s 11.2 years. Its tenants carry more credit risk, though. Only 13.4% of ABR comes from investment-grade tenants, and NNN leans on auto service and early childhood education. Winner: Agree.
Growth and Cost of Capital: Agree’s Premium Pays for Its Expansion
A net lease REIT grows by raising money through stock and debt, then buying buildings whose rental yield (the cap rate) is higher than the cost of that money. The difference becomes AFFO growth. A higher share price makes new stock cheaper to issue, which increases that difference.
Agree trades at 14x the center of its 2026 AFFO guidance. NNN trades at 11x. Agree also has an A- rating from Fitch and took out term-loan money at a fixed 4.02%. That lets it plan $1.6B-$1.8B of investment this year, compared with NNN’s $700M-$800M. Agree’s guidance calls for ~5.8% AFFO growth at the center, while NNN’s implies 3.8%. Issuing that much stock has a cost: it reduced Agree’s EPS to $0.44, missing the $0.47 consensus. Over 10 years, Agree’s adjusted share price rose 116.05%, compared with 41.06% for NNN. Winner: Agree.
Verdict: NNN Is the Retiree’s Landlord
Agree wins in two of the three areas, but NNN better suits a retired person living on the checks. Each dollar invested buys 6.1% in income instead of 4.9%, with nearly identical AFFO coverage, a 37-year record of increases and a lower valuation. NNN’s growth is slower but in part funded from its own cash, including about $215 million of expected free cash flow. That makes it less dependent on its stock price for growth.
Agree is the better fit for a younger saver who reinvests monthly dividends and wants investment-grade tenants. For the question in the headline, NNN pays income investors better. Watch how NNN refinances its $350 million debt maturity coming due in December. Management estimated 10-year debt would cost mid-5% to 5.6%.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
