Realty Income Corporation (NYSE:O) Plans Dividend Increase - $0.27 Per Share

Key Points

• Realty Income plans to raise its monthly dividend to $0.2715 per share, up 0.2% from $0.27. Shareholders of record on September 30 will receive the payment on October 15, representing an annualized yield of about 5.3%.
• The REIT has increased its dividend for 31 consecutive years, but its current earnings payout ratio is elevated at 215.2%. Analysts expect improved earnings to reduce the forward payout ratio to approximately 70.7%.
• Realty Income recently met quarterly EPS expectations at $1.09 and reported revenue of $1.55 billion, up 9.7% year over year. Wall Street maintains a “Moderate Buy” consensus rating with an average price target of $67.23, versus a recent share price of $61.02.

Realty Income Corporation (NYSE:O - Get Free Report) declared a monthly dividend on Tuesday, September 8th. Shareholders of record on Wednesday, September 30th will be given a dividend of 0.2715 per share by the real estate investment trust on Thursday, October 15th. This represents a c) annualized dividend and a yield of 5.3%. The ex-dividend date of this dividend is Wednesday, September 30th. This is a 0.2% increase from Realty Income's previous monthly dividend of $0.27.

Realty Income has increased its dividend payment by an average of 0.0%annually over the last three years and has raised its dividend annually for the last 31 consecutive years. Realty Income has a payout ratio of 215.2% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Realty Income to earn $4.60 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 70.7%.

Realty Income Stock Down 0.4%

Shares of O stock opened at $61.02 on Wednesday. The stock has a fifty day moving average price of $63.21 and a 200 day moving average price of $62.98. The stock has a market cap of $57.74 billion, a P/E ratio of 44.54, a price-to-earnings-growth ratio of 4.35 and a beta of 0.71. Realty Income has a one year low of $55.86 and a one year high of $67.93. The company has a debt-to-equity ratio of 0.73, a current ratio of 5.88 and a quick ratio of 5.88.

Realty Income (NYSE:O - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The real estate investment trust reported $1.09 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.09. Realty Income had a net margin of 20.93% and a return on equity of 3.12%. The firm had revenue of $1.55 billion during the quarter, compared to analyst estimates of $1.40 billion. During the same quarter in the prior year, the business posted $1.05 earnings per share. The company's quarterly revenue was up 9.7% compared to the same quarter last year. Realty Income has set its FY 2026 guidance at 4.440-4.450 EPS. Analysts predict that Realty Income will post 4.43 earnings per share for the current year.

Wall Street Analyst Weigh In

O has been the subject of several analyst reports. Robert W. Baird lifted their price target on shares of Realty Income from $64.00 to $65.00 and gave the company a "neutral" rating in a report on Monday, July 6th. Scotiabank lowered their price objective on shares of Realty Income from $72.00 to $67.00 and set a "sector outperform" rating for the company in a research report on Thursday, June 18th. UBS Group set a $67.00 target price on Realty Income in a research report on Thursday, June 18th. Evercore set a $68.00 price objective on shares of Realty Income in a report on Friday, August 7th. Finally, Barclays cut their target price on Realty Income from $67.00 to $65.00 and set an "equal weight" rating on the stock in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $67.23.

About Realty Income

Realty Income Corporation is a real estate investment trust (REIT) that owns and manages a diversified portfolio of commercial properties. The company primarily uses long-term, single-tenant, net lease agreements, under which tenants generally assume responsibility for property-level expenses such as maintenance, insurance and taxes.

Its portfolio includes retail, industrial, distribution, office, gaming and other commercial properties. Realty Income serves a broad range of tenants, including convenience stores, grocery stores, pharmacies, home improvement retailers, restaurants, logistics operators and other established businesses.

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