Realty Income (O) stock has experienced an impressive run of late. Let's delve deeper to check whether it is too late to buy the shares or if there is still an opportunity to accumulate them.
In 12+ months, we will look back wishing we had bought more of these REITs.
Realty Income stock is down so far in 2024 and is roughly flat even including dividends. The business is largely doing well, although there are some legitimate concerns.
This month marks my tenth year as a shareholder of Realty Income. O is the world's largest net lease REIT and the fourth largest REIT by market capitalization. Over the past ten years, O's portfolio and business have fundamentally changed, adding business units and absorbing large competitors.
In the most recent trading session, Realty Income Corp. (O) closed at $57.73, indicating a +0.17% shift from the previous trading day.
After we received decreasing CPI and PPI data points, the market has recalibrated the interest rate path. As the probabilities of first interest rate cuts have gone up, O's share price has increased accordingly. These dynamics clearly confirm that there is a huge price appreciation potential in O, stemming from the normalization in interest rate.
Realty Income demonstrates strong performance amid a quite challenging environment, and the management's aggressive guidance hikes suggest confidence in the company's prospects. The stock's historical seasonality analysis suggests that it usually performs stronger in the second half of a year. My valuation analysis suggests that the stock is around 30% undervalued.
Realty Income and Comcast are trading 2% and 10% lower this year, respectively, through Tuesday's close. Realty Income and its conservative approach along with monthly dividend checks will shine if rates start to fall this year.
Interest rates will soon go from a headwind to a tailwind for dividend stocks. Falling rates should boost Realty Income's valuation while lowering its cost of capital, allowing it to acquire more properties.
Realty Income's dividend yield is near its highest levels in a decade. The net lease REIT has the giant size and scale to do things that smaller peers can't easily consider.
Realty Income Corporation is setting itself up nicely for a great future by buying top-tier properties in times of economic hardship. Realty Income is a blue chip REIT, which pays a dividend each month, which is ideal for people looking to get some cash flow out of their investments. Easy to understand visuals are used to make everything easy to understand.
Realty Income stock has underperformed by a wide margin as of late, creating an opportunity. The company has seen fewer headwinds from higher interest rates than peers due to maintaining a more conservative balance sheet. Despite potential risks from troubled tenants like Red Lobster and Walgreens, Realty Income's strong balance sheet and resilient revenue streams make it a compelling investment opportunity.