In today's match-up of The Motley Fool Better-Buy Tournament, Realty Income squares off against Prospect Capital in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each as they make the case for their stocks, with the winner determined by you, the readers.
Motley Fool Financials analyst David Hanson believes Prospect Capital (NASDAQ:PSEC) should move on to the next round because of the company's larger investment portfolio which has excellent credit quality. Prospect Capital's BDC structure allows it to pass earnings through to shareholders, which results in a big dividend yield. Finally, David sees Prospect's large size and scale as a big advantage when it comes to finding new investments and getting favorable prices.
Any company that boldly labels itself as "the monthly dividend company," will always pique the interest of many investors looking for income, but it turns out Realty Income (NYSE:O) should be considered by all. The reality that it has increased its dividend for 66 consecutive quarters is eye-opening and appealing, but so too is the fact that its ever-important adjusted funds from operations rose by 17% last year. Throw in a diverse revenue stream from a variety of businesses and a great management team, and there is no denying "the monthly dividend company" is your best buy for March.
Watch these analysts square off in the video below and then vote for a winner. Then check out the other companies in the Motley Fool Better-Buy Bracket.
This year's winning stock?
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.
Cast your vote in the poll below the video!