Orrstown Financial Services and Codorus Valley Bancorp Successfully Complete Merger of Equals
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 01 2024
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Should l Buy O?
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Analyst Views on O
Wall Street analysts forecast O stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for O is 62.59 USD with a low forecast of 60.00 USD and a high forecast of 67.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
3 Buy
7 Hold
1 Sell
Hold
Current: 63.090
Low
60.00
Averages
62.59
High
67.50
Current: 63.090
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 acquiring and managing freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients. 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. The Company owns or holds interests in approximately 15,621 properties located in all 50 United States (U.S.) states, the United Kingdom, France, Germany, Ireland, Italy, Portugal, and Spain with clients doing business in 89 industries. Its property types include retail, industrial, gaming and others, such as agriculture and office. Its primary industry concentrations include grocery stores, convenience stores, dollar stores, drug stores, home improvement, restaurants-quick service and 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.
- Consistent Dividend Payments: Realty Income has declared 667 consecutive monthly dividends since its inception, demonstrating its robust ability to provide reliable passive income, which boosts investor confidence.
- Dividend Growth Momentum: Since its public listing in 1994, Realty Income has raised its dividend 133 times, including 113 consecutive quarters, with a compound annual growth rate of 4.2%, indicating strong profitability and financial health.
- High Dividend Yield: Currently, Realty Income boasts a dividend yield of 5.1%, significantly higher than the S&P 500's 1.2%, making it an ideal choice for passive income investors and attracting further capital inflows.
- Strong Financial Profile: Realty Income possesses one of the best balance sheets in the sector, supporting its ability to continue expanding its portfolio of income-producing real estate, ensuring stable cash flows and dividend payments in the future.
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- Stability in Real Estate Stocks: Realty Income (O) and Host Hotels & Resorts (HST) have maintained ratings for 237 and 225 days respectively, showcasing their stable earnings capabilities amid economic fluctuations, which may draw in capital seeking safe investments.
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- Diverse Investment Opportunities: Other high-rated stocks, including American Electric Power (AEP) and Incyte (INCY), demonstrate strong quantitative scores, indicating that investors are seeking stable income sources across various sectors, enhancing market diversity and resilience.
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- Dividend Yield Expectations: Realty Income Corp (O) has a projected dividend yield of 5.2%, with its sustainability hinging on the company's profitability fluctuations, prompting investors to analyze historical dividend charts for future trends.
- Volatility Assessment: The annualized volatility for Realty Income Corp, calculated from the last 250 trading days, stands at 17%, providing crucial insights for investors assessing risk versus reward, particularly when considering selling covered calls at a $65 strike price.
- Options Trading Dynamics: As of Monday afternoon, the put volume among S&P 500 components reached 1.19 million contracts, while call volume hit 2.27 million, resulting in a put:call ratio of 0.52, indicating a strong preference for call options among traders, reflecting optimistic market sentiment.
- Market Sentiment Indicator: The current put:call ratio is below the long-term median of 0.65, suggesting that investors are more inclined to purchase call options, which may signal positive expectations for Realty Income Corp's future performance.
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- Stable Dividend Growth: Realty Income has increased its dividend for 112 consecutive quarters, demonstrating its ability to deliver stable growth across various macroeconomic environments, which is likely to continue attracting income-seeking investors.
- Strong Market Prospects: The company has a total addressable market of $8.5 trillion in Europe, indicating significant expansion potential, particularly with its investments in private capital that will further enhance its competitive position.
- UPS Cash Flow Assurance: United Parcel Service (UPS) expects to generate $6.5 billion in free cash flow in 2023, sufficient to cover $5.4 billion in dividends while also spending $3 billion on capital expenditures, showcasing its financial health and ability to maintain dividends.
- Verizon's Financial Improvement: Verizon Communications projects a 7% year-over-year increase in free cash flow to $21.5 billion in 2026, and with 19 consecutive years of dividend increases, it indicates strong growth potential following the acquisition of Frontier Communications.
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- REIT Stability: Realty Income, the world's sixth-largest REIT, owns over 15,500 properties with top tenants like Dollar General and FedEx, boasting a forward dividend yield of 5.1%, and its impressive track record of 30 consecutive years of dividend increases underscores its stability and growth potential.
- Delivery Giant Resilience: United Parcel Service has never cut its dividend since going public in 1999, currently offering a 5.6% dividend yield, with projected free cash flow of $6.5 billion in 2023, sufficient to cover $5.4 billion in dividends, highlighting its strong financial health and growth prospects.
- Telecom Growth Potential: Verizon Communications offers a 6.1% dividend yield and has increased its dividend for 19 consecutive years, with free cash flow expected to rise to $21.5 billion in 2026, indicating robust growth following its acquisition of Frontier Communications, which strengthens its market position.
- Market Volatility and Investment Strategy: Despite increasing market volatility and concerns over a potential AI stock bubble, high-yield stocks like Realty Income, UPS, and Verizon present attractive options for investors, particularly in uncertain economic conditions due to their stability and growth potential.
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- Stable Dividend History: Realty Income has declared 667 consecutive monthly dividends since its inception, demonstrating its robust ability to provide consistent cash flow while reflecting long-term financial stability.
- Dividend Growth Trend: Since its public listing in 1994, Realty Income has raised its dividend 133 times, with 113 consecutive quarters of increases, achieving a compound annual growth rate of 4.2%, which offers investors predictable income growth.
- High Yield Advantage: Currently, Realty Income boasts a dividend yield of 5.1%, significantly higher than the S&P 500's 1.2%, making it a preferred choice for passive income investors and enhancing its market appeal.
- Strong Financial Position: Realty Income possesses one of the best balance sheets in the sector, ensuring its ability to continue expanding its portfolio of income-generating real estate in the future, thereby further solidifying its market position.
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