Three High-Yield Stocks to Boost Passive Income
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Enterprise Products Partners: As one of North America's largest midstream companies, Enterprise Products Partners offers a distribution yield of approximately 6% and has increased its distributions for 27 consecutive years, demonstrating stable cash flow and attractiveness to income-focused investors, making it suitable for risk-averse profiles.
- Realty Income: Realty Income, with a portfolio of over 15,500 properties, stands as the largest net lease real estate investment trust, boasting a dividend yield of 4.6% and a 30-year history of annual dividend increases, highlighting its strategic significance as a reliable dividend stock.
- Hormel Foods Corporation: Despite facing challenges from rising costs that have impacted profits, Hormel Foods has seen its dividend yield rise to 4.6% and has a remarkable track record of 60 consecutive years of dividend increases, underscoring its potential as a 'Dividend King' and future stability.
- Passive Income Opportunities: These three stocks not only provide high yields but also possess strong business fundamentals and impressive dividend histories, making them ideal for investors looking to maximize income generation in their portfolios.
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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: 66.680
Low
60.00
Averages
62.59
High
67.50
Current: 66.680
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.
Realty Income Q4 Earnings Report Analysis
- Financial Performance Overview: Realty Income reported a Q4 FFO of $1.08, missing estimates by $0.01, while revenue reached $1.49 billion, an 11.2% year-over-year increase that beat expectations by $100 million, indicating strong revenue growth.
- 2026 Earnings Guidance: The company projects net income per share for 2026 to be between $1.65 and $1.69, a significant increase from $1.17 in 2025, reflecting optimism about future profitability.
- Operational Efficiency Metrics: Same-store rent growth is expected to be between 1.0% and 1.3%, slightly lower than 2025's 1.3%, yet the anticipated occupancy rate of approximately 98.5% indicates a stable leasing market.
- Investment and Expense Outlook: The projected investment volume for 2026 is $8.0 billion, a notable increase from $6.3 billion in 2025, while cash G&A expenses as a percentage of total gross asset value are expected to be between 20 and 23 basis points, demonstrating the company's efforts in cost control.
See More
Three High-Yield Stocks to Boost Passive Income
- Enterprise Products Partners: As one of North America's largest midstream companies, Enterprise Products Partners offers a distribution yield of approximately 6% and has increased its distributions for 27 consecutive years, demonstrating stable cash flow and attractiveness to income-focused investors, making it suitable for risk-averse profiles.
- Realty Income: Realty Income, with a portfolio of over 15,500 properties, stands as the largest net lease real estate investment trust, boasting a dividend yield of 4.6% and a 30-year history of annual dividend increases, highlighting its strategic significance as a reliable dividend stock.
- Hormel Foods Corporation: Despite facing challenges from rising costs that have impacted profits, Hormel Foods has seen its dividend yield rise to 4.6% and has a remarkable track record of 60 consecutive years of dividend increases, underscoring its potential as a 'Dividend King' and future stability.
- Passive Income Opportunities: These three stocks not only provide high yields but also possess strong business fundamentals and impressive dividend histories, making them ideal for investors looking to maximize income generation in their portfolios.
See More
Realty Income Q4 Results Modestly Beat Estimates
- Earnings Beat: Realty Income reported Q4 adjusted FFO per share of $1.08, slightly exceeding Wall Street's estimate of $1.07, although it fell short of the S&P CapIQ consensus of $1.09, indicating the company's stability in a competitive market.
- Revenue Growth: The company achieved Q4 revenue of $1.40 billion, surpassing the $1.39 billion consensus, despite a decline from $1.47 billion in the previous quarter, yet showing an increase from $1.34 billion a year ago, reflecting resilience in revenue generation.
- Accelerated Investment Activity: Realty Income anticipates total investment volume of $8.0 billion for 2026, significantly up from $6.3 billion reported for 2025, with Q4 investment volume at $2.4 billion, demonstrating the company's aggressive expansion strategy in the market.
- Improved Rent Recapture Rate: The new annualized base rent on re-leased units was $88.30 million, up from $84.21 million previously, achieving a rent recapture rate of 104.9%, showcasing effective leasing management and strong market demand.
See More
Realty Income Q4 Earnings Miss Expectations
- Earnings Performance: Realty Income's Q4 FFO of $1.08 fell short of expectations by $0.01, indicating pressure on profitability that could undermine investor confidence in the company's financial health.
- Revenue Beat: Despite the FFO miss, Realty Income reported total revenue of $1.49 billion, exceeding market expectations by $100 million, suggesting resilience in revenue growth that may attract some investor interest.
- Market Reaction Cautious: The mixed earnings report has led to a cautious market outlook for Realty Income, potentially putting downward pressure on the stock price and affecting the company's competitive position in the REIT sector.
- Uncertain Outlook: Investors are particularly focused on the company's future guidance in the context of the $14 trillion market, as Realty Income needs to demonstrate stronger growth potential to maintain investor trust moving forward.
See More
Datadog Shares Drop 11% Amid AI Tool Concerns
- Datadog Stock Decline: Datadog (DDOG) shares fell 11% yesterday due to concerns over Anthropic's new feature, Claude Code Security, which raised fears of further disruption in cybersecurity stocks, reflecting market anxiety about AI's impact.
- AI Tool Impact Analysis: Anthropic described its tool as capable of scanning codebases for security vulnerabilities and suggesting targeted software patches, arriving at a pivotal moment for cybersecurity; however, analysts believe the market's reaction may be overblown given Datadog's strong fundamentals.
- Robust Revenue Growth: Despite market fears, Datadog reported a 25% year-over-year revenue growth and a net retention rate exceeding 110%, indicating a sticky customer base and resilience in its business model, suggesting the company remains competitive.
- Market Reaction and Investment Strategy: Analyst Sanmeet Deo emphasized that while market sentiment is low, investors should remain patient and avoid making hasty decisions based on short-term fluctuations, as history shows that long-term holding often proves to be the wisest strategy.
See More
Realty Income Q4 Earnings Expectations and Analyst Ratings
- Earnings Expectations: Realty Income (O) is expected to report Q4 EPS of $0.41 and revenue of $1.39B, reflecting the company's solid occupancy rates and ongoing investments in both international and U.S. markets.
- Increased Investment Guidance: The firm raised its 2025 investment volume guidance from $5B to $5.5B and adjusted the low end of its AFFO per share guidance to between $4.25 and $4.27, indicating strong confidence in future growth.
- Analyst Optimism: Seeking Alpha analyst Scott Kaufman rated the stock a Buy, citing its leverage in the $14 trillion net lease market and an A- S&P credit rating that provides a cost of capital advantage for finding accretive deals.
- Strong Stock Performance: Realty Income's stock has gained over 19% this year, significantly outperforming the 1% rise in the S&P 500 Index, showcasing its robust performance amid macroeconomic tailwinds and successful international expansion strategies.
See More
Realty Income Q4 Earnings Report Analysis
- Financial Performance Overview: Realty Income reported a Q4 FFO of $1.08, missing estimates by $0.01, while revenue reached $1.49 billion, an 11.2% year-over-year increase that beat expectations by $100 million, indicating strong revenue growth.
- 2026 Earnings Guidance: The company projects net income per share for 2026 to be between $1.65 and $1.69, a significant increase from $1.17 in 2025, reflecting optimism about future profitability.
- Operational Efficiency Metrics: Same-store rent growth is expected to be between 1.0% and 1.3%, slightly lower than 2025's 1.3%, yet the anticipated occupancy rate of approximately 98.5% indicates a stable leasing market.
- Investment and Expense Outlook: The projected investment volume for 2026 is $8.0 billion, a notable increase from $6.3 billion in 2025, while cash G&A expenses as a percentage of total gross asset value are expected to be between 20 and 23 basis points, demonstrating the company's efforts in cost control.
See More
Three High-Yield Stocks to Boost Passive Income
- Enterprise Products Partners: As one of North America's largest midstream companies, Enterprise Products Partners offers a distribution yield of approximately 6% and has increased its distributions for 27 consecutive years, demonstrating stable cash flow and attractiveness to income-focused investors, making it suitable for risk-averse profiles.
- Realty Income: Realty Income, with a portfolio of over 15,500 properties, stands as the largest net lease real estate investment trust, boasting a dividend yield of 4.6% and a 30-year history of annual dividend increases, highlighting its strategic significance as a reliable dividend stock.
- Hormel Foods Corporation: Despite facing challenges from rising costs that have impacted profits, Hormel Foods has seen its dividend yield rise to 4.6% and has a remarkable track record of 60 consecutive years of dividend increases, underscoring its potential as a 'Dividend King' and future stability.
- Passive Income Opportunities: These three stocks not only provide high yields but also possess strong business fundamentals and impressive dividend histories, making them ideal for investors looking to maximize income generation in their portfolios.
See More
Realty Income Q4 Results Modestly Beat Estimates
- Earnings Beat: Realty Income reported Q4 adjusted FFO per share of $1.08, slightly exceeding Wall Street's estimate of $1.07, although it fell short of the S&P CapIQ consensus of $1.09, indicating the company's stability in a competitive market.
- Revenue Growth: The company achieved Q4 revenue of $1.40 billion, surpassing the $1.39 billion consensus, despite a decline from $1.47 billion in the previous quarter, yet showing an increase from $1.34 billion a year ago, reflecting resilience in revenue generation.
- Accelerated Investment Activity: Realty Income anticipates total investment volume of $8.0 billion for 2026, significantly up from $6.3 billion reported for 2025, with Q4 investment volume at $2.4 billion, demonstrating the company's aggressive expansion strategy in the market.
- Improved Rent Recapture Rate: The new annualized base rent on re-leased units was $88.30 million, up from $84.21 million previously, achieving a rent recapture rate of 104.9%, showcasing effective leasing management and strong market demand.
See More
Realty Income Q4 Earnings Miss Expectations
- Earnings Performance: Realty Income's Q4 FFO of $1.08 fell short of expectations by $0.01, indicating pressure on profitability that could undermine investor confidence in the company's financial health.
- Revenue Beat: Despite the FFO miss, Realty Income reported total revenue of $1.49 billion, exceeding market expectations by $100 million, suggesting resilience in revenue growth that may attract some investor interest.
- Market Reaction Cautious: The mixed earnings report has led to a cautious market outlook for Realty Income, potentially putting downward pressure on the stock price and affecting the company's competitive position in the REIT sector.
- Uncertain Outlook: Investors are particularly focused on the company's future guidance in the context of the $14 trillion market, as Realty Income needs to demonstrate stronger growth potential to maintain investor trust moving forward.
See More
Datadog Shares Drop 11% Amid AI Tool Concerns
- Datadog Stock Decline: Datadog (DDOG) shares fell 11% yesterday due to concerns over Anthropic's new feature, Claude Code Security, which raised fears of further disruption in cybersecurity stocks, reflecting market anxiety about AI's impact.
- AI Tool Impact Analysis: Anthropic described its tool as capable of scanning codebases for security vulnerabilities and suggesting targeted software patches, arriving at a pivotal moment for cybersecurity; however, analysts believe the market's reaction may be overblown given Datadog's strong fundamentals.
- Robust Revenue Growth: Despite market fears, Datadog reported a 25% year-over-year revenue growth and a net retention rate exceeding 110%, indicating a sticky customer base and resilience in its business model, suggesting the company remains competitive.
- Market Reaction and Investment Strategy: Analyst Sanmeet Deo emphasized that while market sentiment is low, investors should remain patient and avoid making hasty decisions based on short-term fluctuations, as history shows that long-term holding often proves to be the wisest strategy.
See More
Realty Income Q4 Earnings Expectations and Analyst Ratings
- Earnings Expectations: Realty Income (O) is expected to report Q4 EPS of $0.41 and revenue of $1.39B, reflecting the company's solid occupancy rates and ongoing investments in both international and U.S. markets.
- Increased Investment Guidance: The firm raised its 2025 investment volume guidance from $5B to $5.5B and adjusted the low end of its AFFO per share guidance to between $4.25 and $4.27, indicating strong confidence in future growth.
- Analyst Optimism: Seeking Alpha analyst Scott Kaufman rated the stock a Buy, citing its leverage in the $14 trillion net lease market and an A- S&P credit rating that provides a cost of capital advantage for finding accretive deals.
- Strong Stock Performance: Realty Income's stock has gained over 19% this year, significantly outperforming the 1% rise in the S&P 500 Index, showcasing its robust performance amid macroeconomic tailwinds and successful international expansion strategies.
See More
