#6 - Realty Income (NYSE:O)
Some investors may be surprised to see that it’s taken me this long to get to Realty Income Inc. (NYSE: O). The company is considered one of the best REITs to own in any market environment. A key reason for that is the company’s focus on tenants such as Dollar General Corp. (NYSE: DG) and Walmart Inc. (NYSE: WMT). This ensures a steady stream of revenue with little turnover.
That revenue also supports the company’s high-yield dividend, which has a yield of over 5% and has increased for 32 consecutive years. The commercial real estate market has been a challenge in the last five years, and that’s reflected in the total return on O stock of 9.78%.
The question is if you believe the last five years are an outlier or the beginning of a larger shift. Lower interest rates should ease the burden on its tenants, which makes it more likely than less that Realty Income is headed for accelerated growth.
About Realty Income
Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust ("REIT"), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients.
Read More - Current Price
- $57.45
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $63.85 (11.1% Upside)
