Stock Analysis & Ideas

Should You Embrace Realty Income (NYSE:O) for Its Dividend?

Story Highlights

Investors looking for stable returns to safeguard against macroeconomic headwinds and volatile stock markets may consider investing in Realty Income for its stable and growing dividends backed by a strong balance sheet.

Amid fears of a global recession, investors are looking for a safe haven for their investments. Real estate prices have remained somewhat resilient despite coming off their peaks. Investing in real estate investment trusts (REITs), therefore, makes a lot of sense. We think that Realty Income (NYSE: O) presents a good investment opportunity, especially thanks to its stellar dividend growth.

With a current market capitalization of $37 billion, Realty Income Corporation is one of the largest U.S.-based real estate investment trusts with over 11,400 commercial properties across the United States, Spain, and the United Kingdom.

The company has a best-in-class property portfolio. The company continues to bolster its position through meaningful acquisitions. Realty Income invested an impressive $3.2 billion in acquiring high-quality real estate properties in the first half of FY2022.

The company is scheduled to release its Q3 results on November 2. Let’s take a closer look at O stock, which stands out for its outstanding dividend growth history.

Impressive & Consistently Growing Dividends

The company has an impressive track record of growing its dividends for 27 years at a 4.4% CAGR since 1994. Further, it has achieved a milestone of 100 consecutive quarterly dividend increases and, in total, has increased its dividends 117 times to date. No wonder then, it has a steady place in the S&P Dividend Aristocrats index.

Based on the current share price and monthly dividend payments of $0.25 per share, Realty Income’s TTM dividend yield is 5%.

Besides Realty Income, see which other stocks have an ex-dividend date in October 2022. Investors can also take advantage of TipRanks’ Dividend Yield Calculator.

Is Realty Income a Long-Term Buy?

As per TipRanks, analysts are both cautious and optimistic about the stock and have a Moderate Buy consensus rating, which is based on seven Buys and three Holds. Realty Income stocks’ average price forecast of $70.85 implies 16.91% upside potential.

Notably, O stock boasts a score of 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

Graphical user interface, application

Description automatically generated

Concluding Thoughts

The Realty Income stock has provided a compounded annual total return of 15.1% to its shareholders since its IPO in 1994. It is considered one of the leading REITs in the U.S. with a huge $12 trillion global net lease addressable market.

Given a strong balance sheet and a conservative and low debt profile, the stock can be considered a safe haven investment with a regular dividend income stream.

Read full Disclosure

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More