Zacks.com users have recently been watching Realty Income Corp. (O) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
The stock market has performed exceptionally well in the past couple of years, with the S&P 500 producing a total return of nearly 50% between 2023 and 2024. In fact, the S&P 500 reached a fresh all-time high on the day this article was written.
Realty Income's share price is lower than before, but fundamentals remain robust, suggesting the pullback is likely short-term volatility. The company's financial performance is stable, and recent strategic moves by management appear sound, reinforcing the stock's attractiveness. According to the dividend discount model, there is a 21% potential upside.
Dividend stocks can be a great way to boost your portfolio's growth potential or provide a form of passive income over the years. While not all dividend stocks are the same, finding great companies that can stand the test of time can enable you to magnify your returns through market ups and downs.
Realty Income Corp. (O) closed at $54.34 in the latest trading session, marking a +0.39% move from the prior day.
O, with a diversified tenant base, offers solid growth and dividends. But will tariffs, inflation and high rates impact its long-term performance?
One of the market's more popular real estate investment trusts -- or REITs -- is Realty Income (O 1.25%). The well-diversified REIT has a portfolio of 15,450 commercial properties across 90 different industries, with a long track record of shelling out rising, monthly distributions.
Realty Income (O 0.07%) has been a reliable dividend stock for long-term investors. It's one of the world's largest real estate investment trusts (REITs), it pays monthly dividends, and it's raised its payout 128 times since its IPO in 1994.
The net lease sector, with a market cap of ~$100B, has significant growth potential in diverse sub-categories like health & fitness, casinos, and data centers. Essential Properties and Agree Realty show attractive investment spreads and growth potential, but Realty Income offers the best valuation and defensive business model. Realty Income's shares are trading at 13.0x P/AFFO with a 5.8% dividend yield, making it a strong all-weather pick for long-term investors.
When a given stock enters a bear market, some risk-tolerant investors often feel they have the opportunity to buy on sale. This is especially true for dividend stocks, since a lower buy price translates into a higher-percentage dividend yield on one's investment.
The average real estate investment trust (REIT) offers a dividend yield of roughly 3.8% today. That's well above the S&P 500's 1.2%.
Realty Income Corporation investors endured some pain recently, as market sentiments shifted from optimism to pessimism. I explain why the surge in 10-year bond yields was likely the main culprit, while noting that Realty Income's fundamental drivers haven't materially changed. Realty Income benefits from its non-discretionary retail portfolio, but higher rates could affect its acquisitive cadence this year.