3 Reasons to Buy Realty Income Stock Like There's No Tomorrow
Why the stock is a buy in the current environment.
What Is the Dividend Payout for Realty Income?
The leading retail REIT has a remarkably strong dividend history.
3 Dividend Stocks That Are Screaming Buys in October
Realty Income, AT&T, and Opera look like undervalued income plays.
Realty Income: Dividend Powerhouse With Potential Upside
Realty Income boasts a strong dividend history, with a dividend CAGR that has significantly outpaced inflation over the past three decades. This robust dividend performance is the result of excellent business execution, prudent capital allocation, and rigorous investment decision-making. Detailed analysis reveals O's intrinsic value is significantly higher than its current market price, indicating a substantial upside.
Realty Income Stock Should Continue To Appreciate As The Fed Cuts Rates
Realty Income is a robust long-term investment, excelling in diverse markets with consistent monthly dividends and dividend increases, making it resilient during the Federal Reserve's rate cut cycle. As the largest net lease REIT in the U.S., Realty Income boasts a diversified tenant base, high occupancy rates, and strong credit ratings, ensuring stability and growth. Realty Income's strategic expansions into international markets and new industries, along with its strong balance sheet, enhance its capacity for competitive acquisitions and refinancing.
Realty Income And Interest Rate Cuts: 3 Reasons I Disagree With The Crowd
A traditional wisdom shared among REIT investors is that rate cuts are good for REIT stocks. I agree in general but hold three key reservations when applying this wisdom to O under current conditions. Despite recent rate cuts, its yield spread remains near historical lows, indicating an unfavorable return/risk ratio.
Realty Income: Still A Buy, But Clouds Are Forming
We are maintaining our buy recommendation for Realty Income due to a wide investment spread and a track record of strong total returns above the cost of equity. Realty Income's current cap rate of 7.90% and cost of capital at 6.39% yield a healthy investment spread of 151 basis points. In addition, the Free Standing Retail REIT sector is now valued within a range that would facilitate an increase in transaction volume.
Realty Income: A Rate Cut Winner
The Federal Reserve's rate cut in September benefits Realty Income, allowing the REIT to potentially benefit from acquisition-driven growth opportunities. Lower interest rates tend to benefit REITs, generally speaking, which is why I believe O, assuming its portfolio performance doesn't suffer, has outperformance potential. Realty Income's diversified portfolio, growth opportunity in Europe, and focus on acquisitions position it as a rate cut winner.
Realty Income: Additional Upside Is On The Table Following Its Latest Bull Run
Realty Income, a major REIT with a $53.78 billion market cap, offers a 5.13% yield and has a 54-year history of consistent dividends. Recent growth driven by acquiring Spirit Realty Capital, increasing properties from 13,118 to 15,450, and boosting revenue by 31.4% year-over-year. Strong financial metrics: FFO grew from $688 million to $929.1 million, EBITDA rose from $890.7 million to $1.22 billion, indicating robust cash flow.
Realty Income: History Screams "Buy"
I like the US REIT sector in general for its handsomely and sustainably growing cash flows. Also, it's trading at a 12% discount to the S&P 500 index. Realty's AFFO in Q2, a metric that exemplifies operational prowess, came in at $931.9 million, up 35.4% from $688.3 million last year. O's decision to strategically dispose of these underperforming properties not only added to the quality of their portfolio but also contributed to the impressive increase in FFO.
Rate Cuts: 1 High-Yield Dividend Stock to Buy Now
REITs like low rates and struggle with higher rates. Realty Income pays a battle-tested 5% dividend that will shine as rates fall.
2 High-Yielding Funds That Could Be Placed In Retirement Portfolio
Predictable cash flows, strong balance sheets and attractive yields already from the start are the most common properties the retirement investors are seeking in their portfolio. By doing a proper due diligence, investors can find these elements in infrastructure and real estate segments. In this article, I present two closed-end funds that, in my opinion, could be easily included in retirement income seeking portfolios if the objective is high and sustainable income.
