Real Estate Investment Trusts (REITs) have gained popularity among income-centric investors due to their high dividend payouts compared to other sectors. Realty Income and Agree Realty, symbols O and ADC respectively, are distinguished REITs well-regarded by investors and analysts.

Both Realty Income and Agree Realty have received predominantly bullish ratings from industry analysts such as Mizuho, Stifel, BMO Capital, RBC, Truist, and Wells Fargo. While Realty Income is valued at an average of $60, higher than its current price of $56, Agree Realty has an average target of $65.97, surpassing its current price of $56.90. These REITs are valued for their high-quality assets and consistent dividend yields, with Agree Realty offering a 5.30% forward yield and Realty Income providing a 5.85% yield, establishing it as a dividend aristocrat.

However, despite their strong dividend payouts, analyzing the total return rather than focusing solely on price appreciation is crucial. Historical performance does not guarantee future success, but it provides insights into an asset's stability. An overview of Realty Income, Agree Realty, and the iShares Global REIT ETF (REET) displays their trailing performance compared to the broader market. While REITs offer enticing dividends, their overall returns have often lagged behind benchmark indices like the S&P 500 ETF (SPY).

Over the years, Realty Income, Agree Realty, and REET have struggled to match the performance of the broader market represented by SPY, indicating potentially weaker returns. Their underperformance suggests that investing in comprehensive ETFs capturing a broader market like the SPDR S&P 500 fund may deliver superior returns due to their stability and growth potential. The recent hawkish stance by the Federal Reserve and persistent U.S. inflation challenges may further affect the performance of REITs against broader market benchmarks in the current market environment.