Realty Income Increases Dividend for 30 Years, Yield at 5.6%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Source: Fool
- Stable Investment Choice: Realty Income, as one of the largest REITs globally, owns over 15,500 properties and employs a net lease structure, which reduces the risk associated with single tenants, thus providing a relatively stable income source for investors.
- Quality Asset Portfolio: The company boasts an investment-grade-rated balance sheet with diverse geographic exposure across the U.S. and Europe, primarily focused on retail properties but also including industrial assets and unique holdings like casinos and vineyards, enhancing its market competitiveness.
- Consistent Dividend Growth: Realty Income has increased its dividend for 30 consecutive years, with an average growth rate of 4.2% per year, slightly above historical inflation levels, ensuring the purchasing power of dividends and attracting income-seeking investors.
- Above-Market Yield: With a current dividend yield of 5.6%, significantly higher than the S&P 500's 1.1% and the average REIT's 3.9%, it serves as a foundational high-yield investment, meeting investors' needs for stable cash flow.
Analyst Views on O
Wall Street analysts forecast O stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for O is 62.28 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.
10 Analyst Rating
3 Buy
7 Hold
0 Sell
Moderate Buy
Current: 58.290
Low
60.00
Averages
62.28
High
67.50
Current: 58.290
Low
60.00
Averages
62.28
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.
