High-Yielding REIT Stock with Strong Dividend Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy O?
Source: Fool
- Stable Dividend Record: Realty Income has paid and increased its annual dividend for 31 consecutive years, placing it among a select group of companies with such a strong track record, demonstrating its stability and appeal in uncertain economic conditions.
- Attractive Yield: The company boasts a dividend yield exceeding 5.2%, with a 4.2% annual dividend growth rate over the past 31 years, indicating its capability to provide reliable passive income, attracting income-focused investors.
- Strong Risk Resilience: During market downturns, Realty Income's stock has only experienced an average sell-off of 2.6%, significantly lower than the S&P 500's average drawdown of 22.6%, showcasing its defensive investment advantage suitable for risk-averse investors.
- Robust Cash Flow: By 2025, Realty Income is projected to generate adjusted funds from operations (AFFO) of $4.28 per share, while paying dividends of $3.24 per share, meaning dividends consume about 76% of AFFO, indicating the company's ability to sustain and increase its dividends.
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Analyst Views on O
Wall Street analysts forecast O stock price to fall
11 Analyst Rating
3 Buy
7 Hold
1 Sell
Hold
Current: 63.200
Low
60.00
Averages
62.59
High
67.50
Current: 63.200
Low
60.00
Averages
62.59
High
67.50
About O
Realty Income Corporation is a real estate investment trust. The Company is engaged in the acquisition, ownership, and management of freestanding commercial properties leased under long‑term net lease agreements to a diversified base of operators, including a blend of investment grade, investment grade equivalent, and other clients. It owns a portfolio of over 15,500 properties in all 50 United States (U.S.) states, the United Kingdom, and eight other countries in Europe. It is engaged in a single business activity, which is the leasing of property to clients, generally on a net basis. That business activity spans various geographic boundaries and includes property types and clients engaged in various industries. Its property types include retail, industrial, gaming, and other. Its industry concentrations include grocery, convenience stores, home improvement, dollar stores, restaurants-quick service, health and fitness, drug stores, automotive service, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Realty Income's Scale Advantage: Realty Income boasts a portfolio of over 15,500 properties and a high occupancy rate of 96%, leveraging its investment-grade balance sheet to maintain a competitive edge in low-risk investments, particularly during economic downturns.
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- Market Stability Performance: Realty Income's stock has averaged a mere 2.6% sell-off during market downturns, significantly lower than the S&P 500's average drawdown of 22.6%, indicating its defensive nature throughout economic cycles, making it suitable for income-seeking investors.
- Financial Health Status: In 2025, Realty Income generated an adjusted funds from operations (AFFO) of $4.28 per share, while paying dividends of $3.24 per share, resulting in dividends consuming 76% of AFFO, demonstrating the company's capability to maintain and potentially increase dividends, thus boosting investor confidence.
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- Stable Dividend Record: Realty Income has paid and increased its annual dividend for 31 consecutive years, placing it among a select group of companies with such a strong track record, demonstrating its stability and appeal in uncertain economic conditions.
- Attractive Yield: The company boasts a dividend yield exceeding 5.2%, with a 4.2% annual dividend growth rate over the past 31 years, indicating its capability to provide reliable passive income, attracting income-focused investors.
- Strong Risk Resilience: During market downturns, Realty Income's stock has only experienced an average sell-off of 2.6%, significantly lower than the S&P 500's average drawdown of 22.6%, showcasing its defensive investment advantage suitable for risk-averse investors.
- Robust Cash Flow: By 2025, Realty Income is projected to generate adjusted funds from operations (AFFO) of $4.28 per share, while paying dividends of $3.24 per share, meaning dividends consume about 76% of AFFO, indicating the company's ability to sustain and increase its dividends.
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- Realty Income's Scale Advantage: Realty Income boasts a portfolio of over 15,500 properties and a high occupancy rate of 96%, leveraging its investment-grade balance sheet to maintain a competitive edge in low-risk investments, particularly during economic downturns.
- Brookfield Renewable's Support: Brookfield Renewable collaborates with companies like Google and Microsoft to provide clean energy for data centers, ensuring that even if the AI bubble bursts, the demand for its products and services will remain strong.
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- Procter & Gamble's Stability: As one of the world's largest consumer staples companies, Procter & Gamble (PG) boasts a 69-year streak of annual dividend increases and a 2.9% yield, making it a preferred investment for generating stable income amid market turbulence.
- Realty Income's Resilience: Realty Income (O), the largest net lease REIT with over 15,500 properties, maintained an occupancy rate above 96% even during the Great Recession, offering a robust 5.1% dividend yield that provides strong security for investors.
- Sustained Demand for Clean Energy: Brookfield Renewable (BEP) collaborates with AI-related companies to supply essential electricity, ensuring that even if the AI bubble bursts, its 3.6% and 4.6% dividend yields will continue to deliver stable cash flow amidst market uncertainties.
See More
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- Dividend Yield Analysis: While a high dividend yield can indicate potential risks for a company, Realty Income, as a REIT, has consistently paid and raised its dividends for 31 years, showcasing strong profitability and cash flow generation, with a current yield exceeding 5.2%.
- Market Stability Performance: Realty Income's stock has averaged a mere 2.6% sell-off during market downturns, significantly lower than the S&P 500's average drawdown of 22.6%, indicating its defensive nature throughout economic cycles, making it suitable for income-seeking investors.
- Financial Health Status: In 2025, Realty Income generated an adjusted funds from operations (AFFO) of $4.28 per share, while paying dividends of $3.24 per share, resulting in dividends consuming 76% of AFFO, demonstrating the company's capability to maintain and potentially increase dividends, thus boosting investor confidence.
- Investor Considerations: Despite Realty Income's strong performance, it was not included in Motley Fool's current list of top investment stocks, suggesting that investors should carefully assess the long-term growth potential and market competitiveness of high-yield stocks before making investment decisions.
See More
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- Price Fluctuation Analysis: LGLV's 52-week low is $160.341 per share, with a high of $189.91, and the last trade at $182.31 indicates significant price volatility that may influence investor buying decisions.
- Technical Analysis Tool: Comparing the recent share price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors buy and sell 'units' that can be created or destroyed based on investor demand, impacting the liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs helps identify those experiencing notable inflows (new units created) or outflows (old units destroyed), as these liquidity changes can affect the performance of the underlying stocks held within the ETFs.
See More
High-Yielding REIT Stock with Strong Dividend Growth
- Stable Dividend Record: Realty Income has paid and increased its annual dividend for 31 consecutive years, placing it among a select group of companies with such a strong track record, demonstrating its stability and appeal in uncertain economic conditions.
- Attractive Yield: The company boasts a dividend yield exceeding 5.2%, with a 4.2% annual dividend growth rate over the past 31 years, indicating its capability to provide reliable passive income, attracting income-focused investors.
- Strong Risk Resilience: During market downturns, Realty Income's stock has only experienced an average sell-off of 2.6%, significantly lower than the S&P 500's average drawdown of 22.6%, showcasing its defensive investment advantage suitable for risk-averse investors.
- Robust Cash Flow: By 2025, Realty Income is projected to generate adjusted funds from operations (AFFO) of $4.28 per share, while paying dividends of $3.24 per share, meaning dividends consume about 76% of AFFO, indicating the company's ability to sustain and increase its dividends.
See More
High-Quality Dividend Stock Investment Strategy
- Enterprise Products Partners Advantage: Enterprise Products Partners (EPD) stands out as a midstream energy stock with a 5.9% forward yield and a 28-year dividend growth record, providing investors with stable cash flow amidst high oil prices, thereby enhancing passive income in their portfolios.
- Stability of Realty Income: Realty Income (O) offers a unique monthly dividend model, delivering a 5.2% forward yield through a diversified portfolio of 15,000 properties, and has consistently raised dividends for 32 years, showcasing strong income stability and long-term growth potential.
- Procter & Gamble's Dividend King Status: Procter & Gamble (PG), recognized as a Dividend King with 70 years of consecutive dividend growth, currently boasts a nearly 3% forward yield, maintaining steady profit growth even during economic fluctuations, making it suitable for long-term investors seeking reliable returns.
- Compounding Effect of Dividend Growth: By investing in these high-quality dividend stocks, investors can enjoy stable cash flow while leveraging the compounding effect to achieve long-term wealth growth, particularly important during periods of market volatility.
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