Every AI Stock Cathie Wood Owns, Ranked From Best to Worst

 Every warehouse AI Cathie Wood owns, ranked from best to worst

he knows exactly the type of investor who buys his shares. That's why the real estate investment trust (REIT) trademarked the nickname "Monthly Dividend Company." However, investors must understand the trade-offs they make when they buy this acclaimed dividend stock. Here's a quick look at the pros and cons of Realty Income.

First the good stuff about real estate income

Realty Income has raised its dividend annually for 29 consecutive years. Here's another in that streak: The REIT has also raised its quarterly dividend for more than 100 consecutive quarters. Add these facts to the monthly dividend frequency and buying Reality Income is very close to replacing a paycheck - with regular increases! Retirement investors looking to supplement Social Security with dividend stocks are likely to find this very appealing. The company's business model, meanwhile, centers on consistency. For starters, it's a pure leasing REIT.

 This means they own single-tenant properties where the tenants are responsible for most of the costs at the property level. This keeps Realty Income's expenses low and removes the complexities of property management from the mix, allowing the REIT to focus more on things like acquisitions. About 75% of the rents also come from retail properties, which tend to be fairly generic and can be easily bought, sold and re-vacated if needed. It's also notable that Realty Income is a giant with a market cap of roughly $40 billion, several times larger than its closest peers.

 This gives it economies of scale when it comes to raising capital and when it comes to buying larger property portfolios. A REIT also has an investment-grade balance sheet, which signals financial strength and means it often gets favorable rates when issuing debt.If you're looking for a reliable dividend check from a financially strong and top-notch company, Realty Income should be on your shortlist.

Now the bad news about real estate income

The problem with all of this is that investors are well aware of the success of REITs and are generally given a premium compared to others. So while the 5.2% dividend yield is not unattractive and is actually higher than the REIT average of 4.4%, higher yields are available in the net lease space from still highly respected REITs. A good example would be W.P. Carey (NYSE: WPC ), which is yielding 6.4% today. If you're trying to maximize the income you generate, there are better options. 

Then there's Realty Income's dividend growth, which has averaged around 4.4% over the past 29 years. That's not a bad number and should keep the purchasing power of your dividends slightly ahead of the historical growth rate of inflation. However, there are other dividend stocks with much higher dividend growth rates. If your focus is on dividend growth, real estate income won't be the right answer either.

 The dividend growth rate also suggests another important factor. While Realty Income is an industry giant and has benefits from that, being so large has negatives. Specifically, this REIT has a lot of transactions to do to expand its portfolio of more than 13,000 properties. A smaller landlord wouldn't have to get as many bids to move the top and bottom lines. Realty Income is best seen as a turtle.

What compromise do you want to make?

Ultimately, when considering real estate income, investors must decide whether the costs justify the benefits. For many, the answer will be a hard no, which is perfectly fine. But for conservative income investors who care deeply about collecting reliable dividend checks, accepting a lower yield from slow-growing real estate income may be the perfect choice.

When our team of analysts has a stock tip, it can pay to listen. After all, the newsletter they've been running for over a decade, the Motley Fool Stock Advisor, has tripled the market.They just revealed what they believe are the ten best stocks for investors to buy right now...and Realty Income wasn't one of them! That's right - he thinks these 10 stocks are an even better buy.

Cathie Wood, the renowned founder and CEO of ARK Invest, has become a household name in the investment world, particularly for her forward-thinking approach to disruptive technology stocks. With a focus on innovation and growth potential, Wood's portfolio includes a variety of AI-related stocks. In this article, we'll examine and evaluate each of these AI stocks to give you a clear idea of ​​their potential in the ever-evolving technology landscape.

Cathie Wood's enthusiasm for Tesla is well-known, and it's not just for its electric vehicles. Tesla's AI capabilities, key to autonomous driving, have put the company at the forefront of artificial intelligence in the automotive sector. Thanks to constant advancements and a visionary leader in Elon Musk, Tesla earns its place at the top of this list.

Square (SQ): Empowering Business with Artificial Intelligence

Led by CEO Jack Dorsey, Square is revolutionizing payment processing and its commitment to AI-powered solutions is impressive. The company's Cash App, coupled with its AI initiatives, shows tremendous potential for growth, making Square a solid choice in Cathie Wood's portfolio.

Baidu (BIDU): Chinese AI giant

Baidu, often referred to as the "Google of China", is a leader in AI-driven services, including search, maps and autonomous driving technologies. As China's leading search engine with a robust AI foundation, Baidu's strategic position in the expanding Chinese market secures its place in Wood's AI stock pick.

Unity Software (U): Shaping the future of gaming with AI

Unity Software's role in the gaming industry cannot be understated. Its real-time 3D development platform is essential for game developers, and its use of AI to enhance graphics, physics and animation sets it apart. As the gaming world continues to evolve, Unity's AI-driven approach holds huge promise.Twitter (TWTR): Unlocking Artificial Intelligence for Social MediaLed by Jack Dorsey, Twitter has been exploring applications of artificial intelligence to improve user experience and combat misinformation. Although Twitter faces challenges, strategic investment in AI-driven features could lead to significant growth and innovation.Slack Technologies (WORK): Improving collaboration with artificial intelligence

Integrating AI into a collaboration platform makes Slack a valuable asset in Cathie Wood's portfolio. As remote work continues to be prevalent, demand for powerful AI-powered communication tools like Slack could be a driver of future gains.PagerDuty's AI-driven platform helps businesses manage digital operations effectively. While not as well-known as some other holdings, its focus on IT incidents using AI gives it a unique position in the Wood portfolio.

Cathie Wood's AI-related stock picks demonstrate her forward-looking investment strategy, and each company brings a unique perspective on the technology landscape. While Tesla leads the pack with its AI improvements, other companies like Square, Baidu and Unity Software follow close behind. As the AI ​​sector continues to expand, these Wood-led stocks are likely to play a significant role in shaping the future of technology and investment. Remember that investing involves risk and it is important to do your research before making any financial decision.