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

Key Points

• Realty Income Corporation has increased its monthly dividend to $0.27 per share, representing a 2.1% rise from the previous dividend of $0.26.
• The company currently has a dividend payout ratio of 213.2%, relying on its balance sheet to cover dividends, but future earnings are expected to allow for a sustainable payout ratio of 74.5% next year.
• Realty Income's stock rose to $58.40 with a market capitalization of $53.40 billion, while it has a consensus "Hold" rating and an average price target of $61.73 from analysts.

Realty Income Corporation (NYSE:O - Get Free Report) declared a monthly dividend on Friday, August 15th, Wall Street Journal reports. Shareholders of record on Tuesday, September 2nd will be paid a dividend of 0.269 per share by the real estate investment trust on Monday, September 15th. This represents a c) dividend on an annualized basis and a dividend yield of 5.5%. The ex-dividend date is Tuesday, September 2nd. This is a 2.1% increase from Realty Income's previous monthly dividend of $0.26.

Realty Income has a dividend 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 Trading Up 1.0%

Shares of O traded up $0.58 on Friday, reaching $58.40. 6,239,469 shares of the company's stock were exchanged, compared to its average volume of 4,646,010. The company has a current ratio of 1.85, a quick ratio of 1.85 and a debt-to-equity ratio of 0.72. The stock has a market capitalization of $53.40 billion, a P/E ratio of 56.70, a price-to-earnings-growth ratio of 4.47 and a beta of 0.76. The business has a 50 day moving average price of $57.39 and a two-hundred day moving average price of $56.55. Realty Income has a 12 month low of $50.71 and a 12 month high of $64.88.

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

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on O. JPMorgan Chase & Co. decreased their price objective on shares of Realty Income from $64.00 to $61.00 and set a "neutral" rating for the company in a report on Monday, May 5th. UBS Group boosted their price objective on shares of Realty Income from $62.00 to $66.00 and gave the company a "buy" rating in a report on Friday. Scotiabank boosted their price objective on shares of Realty Income from $57.00 to $58.00 and gave the company a "sector perform" rating in a report on Monday, May 12th. Barclays restated an "overweight" rating on shares of Realty Income in a report on Tuesday, April 22nd. Finally, Stifel Nicolaus upped their price target on shares of Realty Income from $65.50 to $68.00 and gave the company a "buy" rating in a report on Tuesday, May 6th. Eight investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. Based on data from MarketBeat.com, Realty Income currently has an average rating of "Hold" and an average target price of $61.73.

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.