#1 - Realty Income (NYSE:O)
Realty Income (NYSE: O) - Current dividend yield: 3.93% -The first of the REIT’s that we’ll focus on is Realty Income and with good reason. The company has been increasing their dividends for over 25 consecutive years, putting them in the elite Dividend Aristocrat club. Plus, unlike the vast majority of REITs, Realty Income has been able to maintain an “A” or higher credit rating. The stock has been on a tear. Year-over-year, share price has shown an increase of 27% including a gain of just over 10% since the start of 2019. These would be important metrics for any stock, but they are particularly significant for a retail REIT. About 80% of their portfolio is from retail tenants. However, a high percentage of the company’s holdings are in stocks of drug stores and dollar store chains that offer consumer necessities at prices that are competitive with e-commerce. Plus, Realty Income is slightly different than other retail REITs in that about 20% of its portfolio is in non-retail spaces such as offices and industrial properties. This gives the stock an added dimension of diversification. In fact, company estimates project that 94% of its portfolio income is protected against both e-commerce and recessions.
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.
Read More - Current Price
- $53.80
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $60.96 (13.3% Upside)
