Latest news with #RealtyIncome
Globe and Mail
19 hours ago
- Business
- Globe and Mail
3 Reasons to Consider Realty Income Stock in 2025
Key Points Realty Income pays an attractive dividend. The REIT has a lot of growth ahead. It trades at a compelling valuation. 10 stocks we like better than Realty Income › Realty Income (NYSE: O) is the world's seventh largest real estate investment trust (REIT), with $59 billion of real estate across eight countries. The company's large and diversified portfolio generates stable and growing cash flow. That gives it money to pay dividends and invest in expanding its global real estate portfolio. The REIT has a lot going for it these days. Here are three reasons to consider adding Realty Income to your portfolio this year. A lucrative passive income stream Realty Income's mission is "to deliver stockholders dependable monthly dividends that grow over time." The REIT has certainly been successful in achieving that goal over the years. It has paid 661 consecutive monthly dividends over the decades and increased its dividend payment 131 times since its public market listing in 1994. The company has raised its payout for 131 straight quarters and 30 consecutive years, delivering 4.2% compound annual dividend growth. The REIT currently pays a monthly dividend of $0.269 per share, or $3.228 annually. At its recent share price of less than $60, Realty Income has a more than 5.5% dividend yield, several times higher than the S&P 500 's 1.2% yield. The REIT would turn every $100 into $5.50 of annual dividend income at that rate, compared to $1.20 in an S&P 500 index fund. Realty Income supports its high dividend with a conservative financial profile. Its payout ratio is around 75% of adjusted funds from operations (FFO), enabling it to retain nearly $1 billion in excess free cash flow annually to invest in additional income-generating real estate. The company also has one of the REIT sector's 10 highest credit ratings. Its strong finances make its dividend highly sustainable. A long growth runway Realty Income has evolved over the years by steadily diversifying its portfolio. This strategy has opened the doors to new investment pools, expanding its total addressable market opportunity. U.S. freestanding retail properties form the foundation of Realty Income's portfolio and represent a $2.6 trillion total addressable market opportunity. Its subsequent expansion into U.S. industrial properties added another $2 trillion, and its move into Europe opened an $8.5 trillion market. More recent investments in U.S. gaming and data centers increased its future investment opportunity by another $900 billion. Altogether, there's an estimated $14 trillion opportunity in its current focus areas. Realty Income has also expanded into credit investments -- real estate loans and preferred equity -- and it's launching a private capital fund management platform. These new strategies are opening the doors to even more investment opportunities. With one of the strongest financial profiles in the REIT sector, Realty Income has ample capacity to continue expanding its portfolio, supporting earnings and dividend growth. An attractive valuation Realty Income's combination of a high dividend yield and steadily rising earnings has added up over the years. The company has routinely delivered an above-average total operational return -- that's dividend yield plus adjusted FFO-per-share growth rate -- compared with other REITs in the S&P 500. For example, over the past five years, Realty Income has produced a 9.7% average annual total operational return compared to 7.7% for other S&P 500 REITs. It has also outperformed other blue chip REITs over the past one- and three-year periods. High-performing companies tend to trade at a premium valuation. However, that's not the case for Realty Income. The company currently trades for about 13 times its forward earnings. That's significantly cheaper than the 18 multiple of other REITs in the S&P 500. That low valuation is a big reason why Realty Income has such a high dividend yield. Realty Income checks all the boxes Realty Income offers investors an excellent income stream and a solid growth profile at a relatively low valuation. Those features position the REIT to produce attractive total returns in the future. It makes the company worthy of any investor's consideration. Should you invest $1,000 in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025
Yahoo
a day ago
- Business
- Yahoo
Jim Cramer Notes 'Realty Income is for People Who are a Little Bit Older'
Realty Income Corporation (NYSE:O) is one of the stocks that Jim Cramer weighed in on. When a caller asked for Cramer's thoughts on the company, he replied: 'I gotta tell you, I'm going to have to say no to Realty Income. That doesn't mean I don't like it. I like it a lot. You gotta go for growth. Growth is the only safety. You should be looking for a nice return. I mean, I'm talking about stocks like NVIDIA. You should be in NVIDIA even right here. I really think that Realty Income is for people who are a little bit older. What can I say? Hey, it's good to be young. Nothing wrong with that.' source: pixabay Realty Income (NYSE:O) is a commercial real estate investor with a large, diversified portfolio and a focus on delivering reliable monthly dividends. In an April episode, Cramer mentioned the company after a caller inquired whether it was too early to get back into REITs. He said: 'No, absolutely not. I went over that quarter with a fine-tooth comb. I know the stock dropped down to the low 50s when they reported. I felt that there was an overreaction. I actually like the quarter, and I am still a buyer. Don't forget, you get monthly dividend checks when you buy letter O, which is one of the reasons why I stand by it so, so much.' While we acknowledge the potential of O as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
a day ago
- Business
- Yahoo
Realty Income's (O) Monthly Payout Model Makes It One of the Safest Dividend Stocks
Realty Income Corporation (NYSE:O) is included among the 10 Best and Safe Dividend Stocks to Buy Now, as the company offers monthly dividends to shareholders. Aerial view of a large urban cityscape showcasing a major real estate development. The company owns a vast portfolio of over 15,600 properties. While it primarily focuses on net lease retail assets, it also includes industrial properties and has operations spread across North America and Europe, making it a well-diversified business. Realty Income Corporation (NYSE:O)'s large scale allows it to access capital markets with ease. In addition, its investment-grade credit rating helps it secure favorable borrowing terms. This results in a competitive cost of capital, giving Realty Income an advantage over many of its peers. On July 8, Realty Income Corporation (NYSE:O) announced a monthly dividend of $0.269 per share, consistent with its prior payout. Since it was founded about 30 years ago, it has increased its dividend 131 times. In addition, shareholders have received monthly dividends for 661 straight months. The stock supports a dividend yield of 5.58%, as of July 27. While we acknowledge the potential of O as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None.
Globe and Mail
2 days ago
- Business
- Globe and Mail
2 Top Dividend Stocks Yielding 5% or More to Buy Right Now for Passive Income
Key Points Realty Income is a high dividend payer with a long track record. Vici Properties is perhaps the safest way to bet on Las Vegas. 10 stocks we like better than Realty Income › Over time, dividends have become a smaller and smaller part of the stock market's total return, with the S&P 500 boasting an average yield of just 1.22% today, compared to 7.44% in 1950. That said, some companies still offer fat, consistently growing payouts, just like the good old days. Let's explore some reasons why Realty Income (NYSE: O) and Vici Properties (NYSE: VICI) could make fantastic long-term picks. Realty Income Corporation Real estate investment trusts (REITs) are a special type of investment that allows retail investors to benefit from the income generated from commercial real estate. But they aren't all the same. Realty Income stands out from the alternatives because of its track record of success, monthly payouts, and unique, risk-minimizing business model. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Since going public in 1994, Realty Income has increased its dividend for 30 consecutive years. The company funds the payout with the cash generated from its portfolio of 15,600 properties spread across North America and Europe. Realty Income's business model is relatively safe because of its use of triple-net leases, which mean the tenant is responsible for building-level operating costs like tax and insurance. It also tends to focus on recession-proof tenants like grocery stores, dollar stores, and auto repair shops, although many flashier clients like casinos and IT data centers have been sprinkled into the mix to help power growth. While macroeconomic threats like high interest rates have caused Realty Income's shares to underperform in recent years, they give investors an opportunity to buy the stock for cheap and lock in a relatively high yield of 5.55% at the time of writing, which is far above the market average. Vici Properties While Realty Income features a long track record and diversification into many different industries, Vici Properties offers more concentrated exposure. The company was formed in 2017 from the spinoff of real estate assets formerly owned by Caesars Entertainment Company during its bankruptcy restructuring. It has since evolved to become a leading entertainment-focused REIT, with 93 properties across North America. While entertainment is a consumer discretionary expenditure that may drop during economic downturns, Vici manages this risk with triple-net leases and high-quality tenants like Caesars and MGM Resorts, which have stable businesses and are deeply tied to their locations. The company has often relied on leaseback sales, which are when it buys an asset (such as a Casino) from a client who needs liquidity or to free up capital for elsewhere, only to rent it back to them, giving Vici access to stable, growing revenue. Vici also offers excellent growth potential as it expands into different asset types, such as golf courses, and potentially redevelops its 33 acres of undeveloped land located near the Las Vegas Strip. With a dividend yield of 5.15%, Vici is an excellent pick for investors who prioritize passive income. But don't overlook its stock price growth potential. Shares have risen around 60% over the last five years, with a 16% rally so far in 2025. The company probably won't stay this cheap for long. Which dividend stock is right for you? Realty Income and Vici Properties are both great picks for investors who prioritize sustainable passive income for the long term. If you could only pick one, the best choice will depend on your investment goals. Realty Income is better for investors who are willing to sacrifice a little growth potential for stability. But while Vici Properties doesn't have as long a track record, it offers more room for capital appreciation. Should you invest $1,000 in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025
Yahoo
4 days ago
- Business
- Yahoo
Could Investing $10,000 in Realty Income Make You a Millionaire?
Key Points Realty Income is a large and high-yield net lease REIT. The stock is likely to be a slow and steady tortoise. Don't underestimate the power of dividend reliability. 10 stocks we like better than Realty Income › If you invested $10,000 in Realty Income (NYSE: O) at the turn of the last century, it would be worth around $56,000 today. That is a long way off from $1 million, but don't look at this result in a vacuum. The truth is, Realty Income has outperformed the S&P 500 index (SNPINDEX: ^GSPC) over that span. And even if Realty Income can't repeat that feat, there's still a very good reason to own this high-yield real estate investment trust (REIT). Here's what you need to know. Times have changed, but history is important Back at the turn of the century, REITs were still a somewhat obscure asset class. In fact, they remained a niche segment of the financial sector until 2014, when real estate finally got its own sector designation. Ultimately, way back in 2000, REITs weren't well followed and were largely the purview of small, income-oriented investors. A material portion of the growth over the past 25 or so years has come from the inclusion of REITs in the portfolios of larger investors. But the performance numbers are still interesting to consider. The growth of $10K noted above for Realty Income compares to the same investment increasing to roughly $43,000 for the S&P 500 index. That, however, is a price-only figure. That same amount with dividend reinvestment would have grown to nearly $68,000 in the S&P 500 and, hold your hat, over $230,000 for Realty Income. How is that possible? The answer is that back in the 2000s, Realty Income's yield was quite high. Compounding the dividend via dividend reinvestment supercharged the stock's total returns. The S&P 500's yield wasn't nearly as high. So, Realty Income benefited from both the increase in price that came with the broader acceptance of the REIT asset class and its lofty, and steadily growing, dividend. What's the future going to look like? Obviously, the future is unknowable. However, given the past, Realty Income is likely to be a reliable dividend stock. It has increased its dividend annually for 30 consecutive years. If it keeps that up, even though growth is generally fairly modest in any given year, it will be a solid foundation for a broader income portfolio. But there's another bit to consider here. While Realty Income's dividend yield isn't as high as it was back when REITs were less popular, it is still pretty high at roughly 5.6%. For comparison, the S&P 500's yield is only about 1.2%. Compounding that dividend will still help to supercharge Realty Income's return. But that's not the only thing worth noting. Realty Income's stock price is down around 30% from the highs it reached prior to the coronavirus pandemic. That suggests that there is some recovery potential here to go along with the lofty dividend. Put the two together, and investors could see pretty attractive and reliable long-term returns over time. Realty Income is a foundational investment That said, Realty Income isn't going to excite you. But that's the point of buying this REIT. It is a boring and slow-growth business that will provide you with a lofty yield. You can pair it with lower-yielding but higher-growth investments to create a portfolio that will help turn you into a millionaire. That's the value of a $10,000 or $100,000 investment in Realty Income. It can give you the emotional and financial strength to take on the kind of investment risks that will drive the value of your portfolio into seven figures. And yet, as history shows, this REIT, which has outperformed the S&P 500, is anything but dead money. Should you invest $1,000 in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Reuben Gregg Brewer has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy. Could Investing $10,000 in Realty Income Make You a Millionaire? was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
