O ramps up global real estate investments, aiming to boost long-term value through scale, selectivity, and diversification.
Realty Income offers a reliable, growing monthly dividend, backed by a strong credit rating and a diversified tenant base. Shares currently trade far below historical fair value, presenting an attractive entry point for long-term income-focused investors. AFFO growth supports continued dividend increases, with a sustainable payout ratio under 76%, even in a higher interest rate environment.
Dividend stocks are out of favor now, with risk-free Treasuries yielding 4-5%, but this could change when rates drop, like we've seen in China. I explored what single high-income stock I'd own, focusing on safety, growth, and reliable dividends, keys to long-term income investing success. My top choice combines steady dividend growth, a resilient portfolio, and strong fundamentals that make it built to last through market cycles.
Shares of Realty Income (NYSE:O) gained 1.76% over the past month, bringing its year-to-date gain to 8.67%.
These dividend stocks are well-positioned to compound your gains for decades. Their underlying businesses are evergreen.
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.
O raises its dividend for the 131st time, reinforcing its reputation for consistency amid market volatility.
Realty Income is a best-in-class retail REIT with high occupancy, long lease durations, and a strong, diversified tenant base. The 5.7% monthly dividend is well-covered by AFFO, offering one of the safest yields in the sector despite a higher payout ratio than peers. Consistent property acquisitions drive robust AFFO growth, supporting ongoing dividend increases and portfolio expansion.
Recent macroscopic uncertainties have culminated in the downgrade of the U.S. credit rating. These developments have caused interest rates to rise, making the valuations of the overall REIT sector attractive. Despite sector-wide attractive valuations, I urge caution and favor REITs like O with lower leverage and proven performance through economic cycles.
Realty Income Corp. (O) reported earnings 30 days ago. What's next for the stock?
Realty Income Corp. (O) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
O continues to outperform, despite the uncertain macroeconomic environment, as observed in its low cost of capital and its debts' stable weighted average interest rates. This is on top of its diversification to the EU, where cash yields are high with excellent rental recapture increase prospects over the next few years. The management's diversification to data center and gaming sectors have also paid off handsomely, as observed in the richer adj EBITDAre margins.