Realty Income Corporation (NYSE:O) Increases Dividend to $0.27 Per Share

Key Points

• Realty Income raised its monthly dividend by 0.9%, from $0.2715 to $0.2740 per share, equivalent to about $3.29 annually and a reported yield of 5.6%. The dividend is payable December 15 to shareholders of record November 30.
• The REIT reported quarterly EPS of $0.43, above the $0.41 consensus, while revenue of $1.62 billion topped expectations and rose 10.3% year over year.
• The article says the current payout exceeds earnings, with a 215.2% payout ratio; analysts expect next year’s earnings to support the dividend, implying a projected payout ratio of 68.7%. Higher Treasury yields may also weigh on the appeal of REIT dividends.

Realty Income Corporation (NYSE:O - Get Free Report) declared a monthly dividend on Tuesday, November 10th. Investors of record on Monday, November 30th will be given a dividend of $0.2740 per share by the real estate investment trust on Tuesday, December 15th. This represents a $3.29 annualized dividend and a yield of 5.6%. The ex-dividend date is Monday, November 30th. This is a 0.9% increase from Realty Income's previous monthly dividend of $0.2715.

Realty Income has a payout ratio of 215.2% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Realty Income to earn $4.73 per share next year, which means the company should continue to be able to cover its $3.25 annual dividend with an expected future payout ratio of 68.7%.

Realty Income Trading Down 0.5%

O traded down $0.31 on Wednesday, reaching $59.23. 633,993 shares of the company traded hands, compared to its average volume of 6,455,628. Realty Income has a one year low of $53.15 and a one year high of $67.93. The firm has a fifty day simple moving average of $57.02 and a two-hundred day simple moving average of $61.53. The company has a market cap of $56.32 billion, a P/E ratio of 40.80, a price-to-earnings-growth ratio of 4.59 and a beta of 0.65. The company has a quick ratio of 6.04, a current ratio of 6.04 and a debt-to-equity ratio of 0.74.

Realty Income (NYSE:O - Get Free Report) last released its quarterly earnings data on Monday, November 2nd. The real estate investment trust reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.02. The company had revenue of $1.62 billion during the quarter, compared to analysts' expectations of $1.43 billion. Realty Income had a net margin of 21.85% and a return on equity of 3.27%. The firm's quarterly revenue was up 10.3% on a year-over-year basis. During the same period in the previous year, the company earned $1.08 EPS. As a group, equities research analysts expect that Realty Income will post 4.50 earnings per share for the current year.

Key Stories Impacting Realty Income

These are some of the O stories that stood out recently:

• Positive Sentiment: Realty Income raised its monthly dividend 0.9%, from $0.2715 to $0.2740 per share. The new annualized payout is $3.288 per share, or about a 5.5% yield, and is payable December 15 to shareholders of record November 30. Dividend announcement
• Neutral Sentiment: Truist raised its price target to $63 from $60 but maintained a Hold rating, indicating some potential upside without a stronger change in its view of the shares. Truist price-target update
• Negative Sentiment: The 10-year Treasury briefly touched 5% around the dividend announcement. Higher bond yields can make Realty Income’s income stream less attractive relative to Treasuries and may pressure REIT valuations, tempering the benefit of the small dividend increase. Treasury yields and Realty Income

Realty Income Company Profile

Realty Income Corporation is a real estate investment trust (REIT) that owns and manages commercial properties leased to businesses. Its portfolio includes retail, industrial, gaming, and other properties, typically leased under long-term net lease agreements in which tenants are responsible for many property operating expenses. Founded in 1969, Realty Income is known as “The Monthly Dividend Company” for its monthly dividend payments. The company serves tenants across the United States and has expanded its property portfolio into Europe.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.