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.
Realty Income offers a reliable 5.69% yield, 659 consecutive monthly dividends, and 110 quarterly increases, making it a core SWAN holding for income investors. Its diversified portfolio of 15,600+ properties across 91 industries and 98.5% occupancy ensures stability and resilience through economic cycles. With the Fed expected to cut rates in 2025, Realty Income's yield and dividend growth become increasingly attractive versus risk-free alternatives.
TierneyMJ / Shutterstock.com Realty Income If you're looking for a stock that pays monthly dividends, Realty Income Corporation (NYSE: O) is a top monthly dividend company.
When evaluating income investments, dividend yield and dividend growth tend to get most of the attention. But equally important, if not more so, is dividend sustainability. REITs don't operate like traditional companies, and they don't report or rely on EPS the same way, either. Instead, the key metric used to evaluate a REIT's true earnings power is adjusted funds from operations. Industry experts consider AFFO a more accurate measure of a REIT's ability to sustain its dividend because it better captures the recurring, cash-based nature of their business.
PepsiCo and Realty Income are Dividend Aristocrats trading at attractive discounts to historical valuations, offering compelling value and income opportunities. PepsiCo carries a 4.4% yield, strong balance sheet, and global diversification, with growth driven by healthier products and international expansion. Realty Income offers a 5.8% yield, a resilient triple-net lease model, and disciplined capital allocation, with high occupancy and robust investment spreads supporting future growth.