Recently, Zacks.com users have been paying close attention to Realty Income Corp. (O). This makes it worthwhile to examine what the stock has in store.
Realty Income is a reliable income investment with over 25 years of consecutive dividend increases and a current yield just under 6%. The company owns a highly diversified real estate portfolio with high occupancy rates and net leases, providing stability and growth potential. With room for expansion, strong financing strategies, and a focus on growth, Realty Income presents a compelling investment opportunity for income investors.
Realty Income has a dividend yield of about 6% as of mid-2024. The real estate investment trust pays out roughly 80% of its profits to shareholders.
Realty Income is one of the most popular REITs in the market, and for good reason. The REIT has a 30-year track record of growing its dividend and producing market-beating total returns.
Realty Income leases single-tenant properties to high-profile commercial clients. The massive REIT boasts 15,500 properties and an occupancy rate of nearly 99%.
Realty Income is trading 12% lower over the past year, despite announcing several dividend increases along the way. Realty Income will fare better when interest rates fall, making it easier to finance further expansion.
Rental properties have their benefits and drawbacks. Investing in REITs has similar benefits with fewer drawbacks.
Realty income has strong growth and diversification that should power long-term results, and management has been shrewd in opportunistically allocating capital. At the same time, O shares are trading at multi-decade lows on the all-important AFFO multiple, which we believe represents an opportunity. There are risks around dilution, which have likely caused this temporary dislocation, but they should ease by the end of 2024.
A diversified tenant base, accretive buyouts and solid balance sheet strength bode well for Realty Income (O). The steady rise in the monthly dividend payment is encouraging.
Realty Income is a top REIT for passive income, paying dividends consistently and increasing payouts 126 times since going public. Despite underperforming due to high interest rates, Realty Income's diversified portfolio and net lease model have supported steady growth and consistent rental income. The REIT's $45 billion portfolio, 6% yield, and 126 dividend hikes demonstrate consistent growth amid market challenges.
Investors are growing weary of share price weakness in REITs, particularly Realty Income. Despite negativity, Realty Income's historical value remains strong with a unique upside potential. NNN REIT offers a beaten-down blue-chip alternative with speculative upside and potential for M&A premium.
Realty Income is the largest net lease REIT by a mile and offers a historically high yield today. NNN REIT's dividend streak is actually more impressive than that of Realty Income, and its yield is a full percentage point higher than the REIT average.