Realty Income (NYSE:O) Trading Up 3.1% - Still a Buy?

Key Points

• Realty Income shares rose 3.1% on Thursday, trading as high as $63.85 after roughly 6.36 million shares changed hands, slightly above average volume.
• The company announced a new joint venture with Cloud Capital and a global institutional investor to seed a data-center strategy with more than $6 billion in assets, expanding beyond its traditional net-lease portfolio.
• Realty Income also raised its monthly dividend to $0.271 per share, implying an annualized yield of about 5.1%, while analysts currently rate the stock a consensus Hold with an average target price of $66.77.

Realty Income Corporation (NYSE:O - Get Free Report)'s share price shot up 3.1% during trading on Thursday . The stock traded as high as $63.85 and last traded at $63.7650. 6,358,581 shares were traded during trading, an increase of 1% from the average session volume of 6,284,116 shares. The stock had previously closed at $61.82.

Trending Headlines about Realty Income

Here are the key news stories impacting Realty Income this week:

• Positive Sentiment: Realty Income announced a new joint venture with Cloud Capital and a global institutional investor to seed a data-center strategy with more than $6 billion of assets, targeting stabilized hyperscale facilities leased on long-duration triple-net contracts. The move gives O a new growth avenue beyond traditional retail and net-lease properties, which investors may view as a potential boost to future dividend growth. Article Title
• Positive Sentiment: Multiple recent articles highlighted Realty Income’s roughly 5% dividend yield and framed the stock as an attractive income investment, reinforcing the company’s reputation as a dependable monthly dividend payer. Article Title
• Positive Sentiment: Realty Income’s latest monthly dividend was reiterated, supporting the view that cash returns remain stable even as investors rotate toward dividend stocks in 2026. Article Title

Wall Street Analyst Weigh In

O has been the topic of several recent analyst reports. Royal Bank Of Canada raised their price target on Realty Income from $70.00 to $71.00 and gave the company an "outperform" rating in a report on Thursday, May 7th. Morgan Stanley set a $67.00 price objective on Realty Income in a report on Monday, April 27th. UBS Group set a $67.00 price objective on shares of Realty Income in a research report on Thursday, June 18th. Mizuho lowered their target price on shares of Realty Income from $68.00 to $66.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 13th. Finally, Jefferies Financial Group assumed coverage on shares of Realty Income in a research note on Monday, June 1st. They issued a "buy" rating and a $69.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $66.77.

Realty Income Stock Up 3.1%

The company has a market cap of $59.46 billion, a PE ratio of 52.27, a PEG ratio of 4.84 and a beta of 0.72. The stock's 50 day moving average price is $62.00 and its 200-day moving average price is $61.86. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.56 and a current ratio of 1.56.

Realty Income (NYSE:O - Get Free Report) last issued its earnings results on Wednesday, May 6th. The real estate investment trust reported $1.13 EPS for the quarter, topping analysts' consensus estimates of $1.10 by $0.03. The company had revenue of $1.55 billion for the quarter, compared to analysts' expectations of $1.39 billion. Realty Income had a net margin of 18.94% and a return on equity of 2.80%. The firm's revenue was up 12.2% compared to the same quarter last year. During the same quarter last year, the company earned $1.06 EPS. Realty Income has set its FY 2026 guidance at 4.410-4.440 EPS. On average, analysts predict that Realty Income Corporation will post 4.45 earnings per share for the current year.

Realty Income Increases Dividend

The business also recently disclosed a monthly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be paid a dividend of $0.271 per share. This represents a c) dividend on an annualized basis and a dividend yield of 5.1%. This is an increase from Realty Income's previous monthly dividend of $0.27. The ex-dividend date of this dividend is Tuesday, June 30th. Realty Income's payout ratio is 266.39%.

Institutional Investors Weigh In On Realty Income

Hedge funds and other institutional investors have recently modified their holdings of the stock. DGS Capital Management LLC increased its stake in Realty Income by 4.3% in the 4th quarter. DGS Capital Management LLC now owns 3,836 shares of the real estate investment trust's stock worth $216,000 after purchasing an additional 158 shares during the period. Patrick M Sweeney & Associates Inc. boosted its stake in shares of Realty Income by 4.5% during the fourth quarter. Patrick M Sweeney & Associates Inc. now owns 3,801 shares of the real estate investment trust's stock valued at $214,000 after purchasing an additional 164 shares during the period. CYBER HORNET ETFs LLC boosted its stake in shares of Realty Income by 7.4% during the fourth quarter. CYBER HORNET ETFs LLC now owns 2,417 shares of the real estate investment trust's stock valued at $136,000 after purchasing an additional 166 shares during the period. Sage Private Wealth Group LLC grew its holdings in shares of Realty Income by 2.2% in the fourth quarter. Sage Private Wealth Group LLC now owns 7,844 shares of the real estate investment trust's stock worth $442,000 after purchasing an additional 170 shares during the last quarter. Finally, Trust Investment Advisors grew its holdings in shares of Realty Income by 0.8% in the fourth quarter. Trust Investment Advisors now owns 23,266 shares of the real estate investment trust's stock worth $1,311,000 after purchasing an additional 178 shares during the last quarter. Institutional investors own 70.81% of the company's stock.

Realty Income Company Profile

Realty Income Corporation NYSE: O is a real estate investment trust (REIT) that acquires, owns and manages commercial properties subject primarily to long-term net lease agreements. The company's business model focuses on generating predictable, contractual rental income by leasing properties to tenants under agreements that typically place responsibility for taxes, insurance and maintenance on the tenant. Realty Income is publicly traded on the New York Stock Exchange and markets itself as a reliable income-oriented REIT.

Realty Income's portfolio is concentrated in single-tenant, retail and service-oriented properties such as drugstores, convenience stores, dollar and discount retailers, restaurants, and other essential-service businesses.

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