Realty Income Corporation (NYSE:O) Announces Monthly Dividend of $0.27

Key Points

• Realty Income Corporation announced a monthly dividend of $0.27 per share, payable on November 14th to shareholders of record as of October 31st.
• The company has a payout ratio of 213.2%, indicating it relies on its balance sheet to cover dividends, but future earnings projections suggest a more sustainable payout ratio of 74.5% next year.
• Realty Income's stock currently has a consensus rating of "Hold" with an average price target of $62.25 from analysts.

Realty Income Corporation (NYSE:O - Get Free Report) announced a monthly dividend on Tuesday, October 14th. Shareholders of record on Friday, October 31st will be paid a dividend of 0.2695 per share by the real estate investment trust on Friday, November 14th. This represents a c) dividend on an annualized basis and a dividend yield of 5.5%. The ex-dividend date is Friday, October 31st.

Realty Income has a payout ratio of 213.2% 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 $4.32 per share next year, which means the company should continue to be able to cover its $3.22 annual dividend with an expected future payout ratio of 74.5%.

Realty Income Stock Up 0.2%

O stock opened at $58.85 on Wednesday. Realty Income has a 52-week low of $50.71 and a 52-week high of $64.88. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.85 and a quick ratio of 1.85. The stock has a market capitalization of $53.80 billion, a price-to-earnings ratio of 57.13, a price-to-earnings-growth ratio of 4.49 and a beta of 0.78. The company has a 50-day moving average of $59.02 and a two-hundred day moving average of $57.51.

Realty Income (NYSE:O - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The real estate investment trust reported $1.05 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.06 by ($0.01). Realty Income had a net margin of 16.77% and a return on equity of 2.34%. The firm had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.33 billion. During the same quarter in the prior year, the firm earned $1.07 earnings per share. The company's revenue was up 5.3% on a year-over-year basis. As a group, equities research analysts anticipate that Realty Income will post 4.19 EPS for the current year.

Analysts Set New Price Targets

O has been the topic of several analyst reports. Mizuho upped their price objective on Realty Income from $60.00 to $63.00 and gave the company a "neutral" rating in a research note on Thursday, September 11th. Wolfe Research downgraded Realty Income from an "outperform" rating to a "peer perform" rating in a research report on Monday, July 14th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Realty Income in a research report on Wednesday, October 8th. Scotiabank upped their target price on Realty Income from $58.00 to $60.00 and gave the stock a "sector perform" rating in a research note on Thursday, August 28th. Finally, Evercore ISI assumed coverage on Realty Income in a report on Wednesday, October 1st. They issued an "in-line" rating and a $62.00 price objective for the company. Three investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $62.25.

Realty Income Company Profile

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.

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