Investing isn't easy. Even Warren Buffett counsels that most investors should invest in a low-cost index like the S&P 500. That way, "you'll be buying into a wonderful industry, which in effect is all of American industry," he says.

But there are, of course, companies whose long-term fortunes differ substantially from the index. In this series, we look at how individual stocks have performed against the broad S&P 500.

Step on up, National Retail Properties (NNN 0.44%).

National Retail Properties shares have easily outperformed the S&P 500 over the past quarter-century, with most of the outperformance coming in recent years:

Source: S&P Capital IQ.

Since 1987, shares have returned an average of 13.2% a year, compared with 9.7% a year for the S&P (both include dividends). One thousand dollars invested in the S&P in 1987 would be worth $19,200 today. In National Retail Properties, it'd be worth $52,200.

Dividends accounted for a lot of those gains. Compounded since 1987, dividends have made up about 90% of National Retail Properties' total returns. For the S&P, dividends account for 39% of total returns.

Now have a look at how National Retail Properties earnings compare with S&P 500 earnings:

Source: S&P Capital IQ.

Steep underperformance here. Since 1995, National Retail Properties' earnings per share have declined by an average of 0.2% a year, compared with 6% growth a year for the broader index.

What's that meant for valuations? National Retail Properties has traded for an average of 25 times earnings since 1987 -- just above the 24 times earnings for the broader S&P 500. It's far different today, however, National Retail Properties shares currently trade for about 17 times next year's expected profits.

Through it all, shares have been strong performers over the past quarter-century.

Of course, the important question is whether that will continue. That's where you come in. Our CAPS community currently ranks National Retail Properties with a two-star rating (out of five). Care to disagree? Leave your thoughts in the comment section below, or add National Retail Properties to My Watchlist.