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

Key Points

• Realty Income Corporation declared a monthly dividend of $0.27, with the ex-dividend date on October 1st and payment scheduled for October 15th, representing a yield of 5.4%.
• The company reported a payout ratio of 213.2%, indicating it cannot currently cover its dividends with earnings and must rely on its balance sheet, although future earnings are expected to improve.
• Realty Income has a market cap of $54.38 billion, and its stock closed at $59.48 on the day of reporting, with trading volume less than its average.

Realty Income Corporation (NYSE:O - Get Free Report) announced a monthly dividend on Wednesday, September 10th, Wall Street Journal reports. Stockholders of record on Wednesday, October 1st will be paid a dividend of 0.2695 per share by the real estate investment trust on Wednesday, October 15th. This represents a c) dividend on an annualized basis and a dividend yield of 5.4%. The ex-dividend date of this dividend is Wednesday, October 1st. This is a 0.2% increase from Realty Income's previous monthly dividend of $0.27.

Realty Income has a payout ratio of 213.2% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities 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 Price Performance

NYSE:O traded down $0.01 during trading hours on Wednesday, hitting $59.48. 3,087,816 shares of the stock traded hands, compared to its average volume of 5,495,773. The company has a quick ratio of 1.85, a current ratio of 1.85 and a debt-to-equity ratio of 0.72. Realty Income has a 1 year low of $50.71 and a 1 year high of $64.88. The company has a market cap of $54.38 billion, a price-to-earnings ratio of 57.74, a price-to-earnings-growth ratio of 4.52 and a beta of 0.77. The stock has a 50 day moving average price of $57.79 and a 200 day moving average price of $57.01.

Realty Income (NYSE:O - Get Free Report) last released its earnings results on Wednesday, August 6th. The real estate investment trust reported $1.05 EPS for the quarter, missing the consensus estimate of $1.06 by ($0.01). The company had revenue of $1.34 billion during the quarter, compared to analysts' expectations of $1.33 billion. Realty Income had a return on equity of 2.34% and a net margin of 16.77%.Realty Income's quarterly revenue was up 5.3% compared to the same quarter last year. During the same period last year, the firm posted $1.07 EPS. Sell-side analysts forecast that Realty Income will post 4.19 EPS for the current fiscal year.

Institutional Trading of Realty Income

Institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in Realty Income by 2.5% in the 2nd quarter. Vanguard Group Inc. now owns 146,136,211 shares of the real estate investment trust's stock valued at $8,418,907,000 after buying an additional 3,624,852 shares in the last quarter. State Street Corp lifted its stake in shares of Realty Income by 1.1% during the second quarter. State Street Corp now owns 61,732,956 shares of the real estate investment trust's stock valued at $3,556,436,000 after acquiring an additional 676,697 shares during the period. Geode Capital Management LLC increased its holdings in Realty Income by 8.3% in the second quarter. Geode Capital Management LLC now owns 26,979,134 shares of the real estate investment trust's stock valued at $1,548,687,000 after purchasing an additional 2,058,031 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in Realty Income by 3.9% in the first quarter. Dimensional Fund Advisors LP now owns 12,108,561 shares of the real estate investment trust's stock valued at $702,381,000 after purchasing an additional 451,307 shares during the last quarter. Finally, Raymond James Financial Inc. increased its holdings in shares of Realty Income by 5.8% in the second quarter. Raymond James Financial Inc. now owns 12,011,841 shares of the real estate investment trust's stock worth $692,002,000 after acquiring an additional 654,958 shares in the last quarter. 70.81% of the stock is currently owned by institutional investors.

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.

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