Realty Income vs. W.P. Carey: A Choice Between Yield and Growth
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Market Size Comparison: Realty Income boasts a market cap of $53 billion with over 15,500 properties, while W.P. Carey has a market cap of $15 billion with approximately 1,650 assets, highlighting Realty Income's dominant market position.
- Portfolio Differences: With around 80% of Realty Income's assets in retail properties, it appeals to conservative investors, whereas nearly two-thirds of W.P. Carey's assets are industrial, which, despite greater growth potential, have lower liquidity.
- Dividend Performance: Realty Income has increased its dividend for 30 consecutive years, currently yielding 5.54%, while W.P. Carey, after a dividend cut, now yields 5.44%, demonstrating recovery ability but requiring caution.
- Growth Potential: W.P. Carey exhibited a nearly 6% increase in adjusted funds from operations (FFO) per share in Q3 2025, compared to about 3% for Realty Income, indicating W.P. Carey's stronger growth potential, appealing to investors seeking higher returns.
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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 62.59 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: 60.070
Low
60.00
Averages
62.59
High
67.50
Current: 60.070
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.
Analysis of High-Yield Stock Investment Opportunities
- Stable Income from Realty Income: Realty Income boasts a dividend yield of 5.3% and has increased its monthly dividend for 30 consecutive years, reflecting its solid investment-grade balance sheet and conservative management approach, making it a cornerstone investment for conservative investors.
- Procter & Gamble's Dividend King Status: As one of the largest consumer goods companies globally, Procter & Gamble faces volume declines due to economic slowdowns, yet its 2.8% dividend yield and over 60 years of annual dividend increases make it attractive in uncertain markets.
- Pfizer's Turnaround Challenges: Pfizer offers a high dividend yield of 6.7%, but investor sentiment is low due to patent expirations and challenges in drug development; however, the company is actively acquiring promising drug pipelines to navigate current setbacks.
- Diverse Investment Options: Realty Income, Procter & Gamble, and Pfizer each present unique characteristics and yields above market averages, requiring investors to align their investment goals with these opportunities.
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2026 Market Outlook and Top Dividend Stocks Recommendations
- Market Stability: In January 2026, the S&P 500 remains flat after three years of double-digit growth, with short-term volatility likely influenced by upcoming important earnings reports, prompting investors to prepare for the earnings season.
- Sustainable Dividend Stocks: Maintaining a strong portfolio of dividend stocks is crucial during market growth, especially for retirees, as these stocks not only provide stable income but also protect funds during market fluctuations.
- Coca-Cola's Dividend Strength: Coca-Cola (KO), a 'Dividend King', has raised its dividend for 63 consecutive years, currently yielding 2.8%, supported by its robust business model and acquisition strategies that enhance growth prospects.
- Stability of Realty Income: Realty Income (O), owning 15,500 properties globally, has paid monthly dividends for 667 consecutive months, with a current yield of 5.3%, demonstrating its stability and attractiveness in uncertain market conditions.
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