Core Viewpoint - Realty Income Corporation has announced the final calculation of the dividend tax status for its 2025 common stock distributions, indicating a portion of these distributions is non-taxable [1]. Group 1: Dividend Tax Status - Total common distributions paid in 2025 amount to $3.217 per share [1]. - Ordinary income dividend constitutes $2.135 per share, representing 66.37% of the total distributions [1]. - Non-taxable distribution (return of capital) is $1.082 per share, accounting for 33.63% of the total distributions [1]. Group 2: Company Overview - Realty Income Corporation, known as "The Monthly Dividend Company," is an S&P 500 company founded in 1969 [3]. - The company has a portfolio of over 15,500 properties across all 50 U.S. states, the U.K., and seven other European countries as of September 30, 2025 [3]. - Realty Income has declared 667 consecutive monthly dividends and is recognized as a member of the S&P 500 Dividend Aristocrats index for increasing dividends for over 31 consecutive years [3].

With a market cap of $56 billion, Realty Income Corporation (O) is a leading REIT specializing in the acquisition and management of diversified commercial properties under long-term net lease agreements. With a global portfolio of over 15,600 properties across the U.S., U.K., and Europe, the San Diego, California-based company delivers consistent monthly dividends and has increased its dividend for more than 30 consecutive years. Over the past year, Realty Income has delivered a mixed performance, strugg ...

In the latest close session, Realty Income Corp. (O) was down 1.4% at $60.07. The stock's performance was behind the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 0.17%. The real estate investment trust's stock has climbed by 6.82% in the past month, exceeding the Finance sector's loss of 0.23% and the S&P 500's gain of 0.78%.The investment community will be closely monitoring the performance of Realty Income Corp. in its forthcoming earnings repor ...

In our latest SA article published in April for Realty Income Corporation ( O ), we recommended buy when the stock was trading at $58.32. The stock is now trading at $61.48, delivering a total return of 11% (5.4% priceWe write about companies trading at attractive valuations with strong durable competitive advantages. Investment Principles- Invest in companies with consistent earning power and durable competitive advantages.- Invest in companies where we can get a sufficient margin of safety.- We prefer com ...

Core Viewpoint - Realty Income Inc. has shown a positive stock performance with a 7.34% increase over the past month and a 12.70% increase over the past year, leading to optimism among long-term shareholders [1] Group 1: Stock Performance - The current trading price of Realty Income Inc. is $60.30, reflecting a 0.87% increase in the current session [1] - Over the past month, the stock has increased by 7.34% [1] - In the past year, the stock has appreciated by 12.70% [1] Group 2: Price-to-Earnings Ratio Analysis - The P/E ratio is a critical metric for long-term shareholders to evaluate the company's market performance against historical earnings and industry standards [4] - Realty Income Inc. has a P/E ratio of 56.45, which is significantly higher than the aggregate P/E ratio of 34.91 in the Retail REITs industry [5] - A higher P/E ratio may suggest that shareholders expect Realty Income Inc. to outperform its industry, but it could also indicate that the stock is overvalued [5] Group 3: Limitations of P/E Ratio - While the P/E ratio is useful for market performance analysis, it has limitations and should not be used in isolation [8] - A lower P/E may indicate undervaluation or a lack of expected future growth from shareholders [8] - Other factors, such as industry trends and business cycles, should also be considered alongside the P/E ratio for informed investment decisions [8]

Core Viewpoint - Realty Income has declared its second monthly dividend for 2026, maintaining a consistent payout trend over the past decade, with a dividend of $0.27 per share scheduled for payment on February 13, 2026 [1]. Dividend Declaration - The next dividend amount remains unchanged at $0.27 per share, with the ex-dividend date set for January 30, 2026, and the last payment date on January 15, 2026 [2]. Dividend Income Projections - If the dividend schedule remains consistent throughout 2026, the total projected annual dividend income could reach $325, despite fluctuations in past payouts [3]. Yield Comparison - Realty Income, known as "The Monthly Dividend Company," offers a dividend yield of approximately 5.33%–5.36%, which is significantly higher than the average yield of 4.46% in the broader real estate sector [4]. Payout Ratio Concerns - The forward payout ratio stands at 188.8%, indicating that dividends may currently exceed projected earnings, raising questions about long-term sustainability if earnings growth does not improve [5]. Investment Appeal - With a forward annual dividend payout of $3.24 per share, Realty Income remains appealing for investors seeking consistent monthly income, although the high payout ratio may concern those prioritizing dividend durability [6].

Core Insights - Realty Income Corporation (NYSE: O) currently offers a yield of approximately 5.5%, which is appealing to income investors, but yield alone does not indicate the safety of the dividend [1][14] - A checklist is necessary to assess the sustainability of dividends, focusing on key financial metrics rather than just yield [2] Payout Ratio - Realty Income's payout ratio is 74.77%, meaning 75 cents of every dollar earned is distributed as dividends, while 25 cents is retained for other purposes [3][4] - This ratio is within the normal range for REITs (70-80%), but caution is advised if it approaches 90% or exceeds 100% [4] Fixed Charge Coverage - The fixed charge coverage ratio for Realty Income is 4.6x, indicating that for every $1 of debt obligations, the company generates $4.60 in earnings [5][6] - This ratio provides a buffer against rising interest rates or tenant losses, ensuring the dividend remains secure [6] Credit Rating - Realty Income holds an A- rating from S&P and A3 from Moody's, both of which are considered investment grade [7][9] - A strong credit rating allows the company to borrow at lower rates, reducing the risk of dividend pressure due to increased borrowing costs [8][9] Liquidity - As of Q3 2025, Realty Income has $3.5 billion in total liquidity, which includes cash and available credit lines [10][11] - This strong liquidity position enables the company to manage short-term financial challenges without jeopardizing the dividend [11] Occupancy Rate - Realty Income's occupancy rate is 98.7%, with only about 1.3% of its approximately 15,400 properties unoccupied [12] - A high occupancy rate indicates a steady flow of rental income, which is crucial for maintaining dividend payments [12] Summary of Financial Metrics - The checklist for Realty Income includes: - Payout Ratio: 74.77% (Safe Threshold: Below 85%) - Fixed Charge Coverage: 4.6x (Safe Threshold: Above 2.5x) - Credit Rating: A- / A3 (Safe Threshold: Above BBB) - Liquidity: $3.5B (Safe Threshold: Comfortable) - Occupancy: 98.7% (Safe Threshold: Above 95%) [13] - All metrics indicate a solid foundation for the dividend, though ongoing monitoring is necessary [14]

Core Viewpoint - Realty Income (NYSE:O) shares experienced a 7.14% increase over the past month following a slight decline of 0.09% in the previous month [1] Company Summary - Realty Income's stock performance shows a notable recovery with a 7.14% gain in the last month [1] - The previous month saw a minimal loss of 0.09%, indicating a potential turnaround in investor sentiment [1]

Core Viewpoint - Realty Income is viewed as a long-term investment due to its consistent growth, diversification, and strong financial profile, making it a reliable source of passive income [1][6]. Group 1: Company Growth and Diversification - Realty Income has expanded from a single restaurant property in 1969 to over 15,550 properties across North America and Europe, showcasing significant growth [2]. - The company has diversified its platform by adding new geographies, property types, and investment platforms, which has reduced its risk profile and enhanced growth prospects [2]. Group 2: Financial Strength and Dividend Stability - Realty Income maintains one of the top 10 credit ratings in the REIT sector and has a conservative dividend payout ratio of less than 75% of its adjusted funds from operations [3]. - The company has never reduced its dividend payment in over 30 years as a public company, having increased its dividend 133 times since its public market listing in 1994 [3]. Group 3: Market Data and Investment Opportunities - Realty Income's current market capitalization is $56 billion, with a current stock price of $60.74 and a dividend yield of 5.31% [4][5][7]. - The company estimates its total addressable investment opportunity to be $14 trillion, allowing for flexibility in investing where the best opportunities arise [5].

Core Viewpoint - Realty Income is highlighted as a top choice for income investors due to its high dividend yield, consistent dividend growth, monthly payments, stability, and growth opportunities. Group 1: High Yield - Realty Income offers a forward dividend yield exceeding 5.2%, which is attractive for income investors [2] - The high yield is supported by its status as a real estate investment trust (REIT), which must return at least 90% of income to shareholders to avoid federal income taxes [3] Group 2: Dividend Growth - Realty Income has a strong track record of increasing dividends for over 30 consecutive years, with a compound annual growth rate (CAGR) of 4.2% [5] - The REIT has raised its dividend 133 times since its NYSE listing in 1994, including 112 consecutive quarterly increases [6] Group 3: Payment Frequency - Realty Income pays dividends monthly, branded as "The Monthly Dividend Company," and has maintained this for 667 consecutive months [7] Group 4: Stability - The company has achieved 29 consecutive years of positive total operational returns, which combine adjusted funds from operations (FFO) per share growth and dividend yield [8] - Since its NYSE listing, Realty Income's shares have only declined more than the S&P 500 twice during significant market downturns, with a low beta of 0.5 [9] - The stability is attributed to its diversified portfolio of over 15,500 properties across 92 industries, ensuring steady free cash flow [10] Group 5: Growth Opportunities - Realty Income has generated a compound annual total return of 13.7% since its NYSE listing, outperforming the S&P 500 over the long term [12] - The company sees growth potential in Europe and private capital markets, with management believing these initiatives could enhance long-term earnings growth [14]