SAN DIEGO, June 26, 2025 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced it will release its second quarter 2025 operating results after the New York Stock Exchange closes on August 6, 2025. Following publication of this earnings release, the company will host its quarterly investor call at 2:00 p.m. PDT.To access the conference call, dial (833) 816-1264 (United States) or (412) 317-5632 (International). When prompted, please ask for the Rea ...

Historical Performance & Returns - Realty Income has produced positive total operational return each year since its NYSE listing in 1994[5] - The company's historical average dividend yield is approximately 6%[6] - The historical average AFFO (Adjusted Funds From Operations) per share CAGR (Compound Annual Growth Rate) is about 5%[7] - The historical average total operational return is approximately 11%[8, 11] - From 2015-2024, the average total operational return was approximately 10%[10] Expansion & Diversification - In 2023, Realty Income executed two sale leaseback transactions in the US totaling $206 million[30] - In 2023, Realty Income acquired 25 Asda properties in the UK for £650 million[24] - Realty Income partnered with Asda on a £300 million secured note in 2024 and a £142 million floating rate loan in 2023[26] - The company has a significant $8.5 trillion addressable market in Europe[23] Risk & Volatility - Realty Income has produced approximately 10% average total operational return with only approximately 2% volatility[37]

Group 1 - The article promotes a portfolio strategy that generates income without the need for selling assets, aiming to simplify retirement investing [1][2] - It emphasizes the importance of community and education in investing, suggesting that individuals should not invest alone [2] - The service offers features such as model portfolios, buy/sell alerts, and regular market updates to assist investors [2][4] Group 2 - The article mentions that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [5] - It notes that recommendations are closely monitored and alerts are issued exclusively to members, indicating a proactive management approach [4]

Core Insights - Realty Income (O) has achieved a solid 9.3% year-to-date return, raising questions about its current valuation and potential future entry points for investors [1][2] - The company has outperformed peers like Agree Realty Corporation (ADC) and NNN REIT, as well as the Zacks REIT and Equity Trust - Retail industry and the S&P 500 composite [1] Performance Overview - Realty Income has a robust occupancy rate of 98.5% as of March 31, 2025, with a historical median of 98.2%, indicating strong demand for its properties [6] - The company has invested $1.37 billion in the first quarter of 2025, targeting $4 billion for the year, focusing on strategic expansion in the U.S. and Europe [7][8] Growth Drivers - The company’s strategic investments in non-discretionary retail and service-based tenants, which account for approximately 91% of its rent, provide stability through economic cycles [5] - Realty Income's expansion into growth sectors like gaming and data centers positions it for long-term growth in a $14 trillion global net lease market [7][15] Financial Health - Realty Income maintains a 5.63% dividend yield and has a history of consistent dividend payouts, with 111 straight quarterly increases [9] - The company has an investment-grade credit rating and a strong balance sheet, which supports its growth strategy [15] Valuation Insights - Realty Income is currently trading at a forward 12-month price-to-FFO of 13.41X, which is below the retail REIT industry average of 15.09X but slightly above its one-year median of 13.16X [12] - Compared to peers, Realty Income trades at a discount to Agree Realty (17.45X) but at a premium to NNN (12.56X), indicating a mixed valuation perspective [12] Challenges - The company faces macroeconomic uncertainties and tariff issues that could impact its retail tenants and rental income [10] - Interest rate sensitivity and elevated leverage, with $27.6 billion in debt, are significant concerns in the current high-rate environment [11]

Core Viewpoint - High-yield stocks with safe, attractive, and growing dividends are valuable investment options, especially for retirement income supplementation [1] Group 1: Safe High-Yield Dividend Stocks - Five of the safest high-yield dividend stocks currently are Verizon Communications, Realty Income, PepsiCo, Enterprise Products Partners, and MPLX [2] - These stocks are characterized by their safe and growing dividends along with high yields [2] Group 2: Verizon Communications - Verizon has a dividend yield of 6.5% and has raised its dividend for 18 consecutive years [4] - The company generated $18.7 billion in free cash flow over the past 12 months and paid out $11 billion in dividends, resulting in a dividend coverage ratio of 1.8 [5] - Verizon's leverage ratio on unsecured debt is 2.3, indicating a strong balance sheet and the potential for continued dividend growth [5] Group 3: PepsiCo - PepsiCo offers a 4.4% yield and has increased its dividend for over 50 years [6] - The company generated $7.2 billion in free cash flow last year, matching its dividend payout, which limits extra cash but emphasizes shareholder returns as a priority [7] - Elevated capital expenditures, including $5.3 billion spent on IT infrastructure, are expected to normalize, improving the coverage ratio [8] Group 4: Realty Income - Realty Income has a 5.6% yield and has consistently increased its dividend for 30 years, paying monthly dividends [9] - The REIT's AFFO rose 3% to $1.06 per share, with a dividend payout of $0.796 per share, resulting in a coverage ratio of over 1.3 [11] - Despite challenges from declining commercial property values, a stable interest rate environment is expected to enhance its performance and dividend growth [12] Group 5: Enterprise Products Partners - Enterprise Products Partners has a 6.9% yield and has raised its distribution for 26 consecutive years [13] - Approximately 85% of its cash flow comes from fee-based operations, providing stability and predictability [13] - The company had a coverage ratio of 1.7 over the past 12 months, supported by a strong balance sheet and investment-grade debt ratings [14] Group 6: MPLX - MPLX boasts the highest yield at 7.4% and has increased its distribution by 12.5% in 2024, marking three consecutive years of double-digit growth [15] - The company has a robust coverage ratio of 1.5 based on distributable cash flow [15] - MPLX is experiencing solid growth in its natural gas and NGL segments, contributing to reliable cash flow [16]

Core Insights - Investors in 2025 are facing a challenging market characterized by persistent inflation and global uncertainty, leading to a shift towards high-quality, stable companies rather than high-risk growth stocks [1][2] Company Summaries Coca-Cola - Coca-Cola is recognized for its predictability and financial strength, boasting a dividend yield of 2.96% and an annual dividend of $2.04, with a 64-year track record of dividend increases [4][5] - The company recently announced a 5.2% increase in its dividend, marking its 63rd consecutive year of growth, supported by strong brand loyalty and pricing power [5][6] - Coca-Cola's strong organic revenue growth of 9% was attributed to successful price adjustments, demonstrating its ability to shield profits from inflation [6][7] PepsiCo - PepsiCo offers a diversified business model across beverages and convenient foods, with a dividend yield of 4.41% and an annual dividend of $5.69, maintaining a 54-year dividend increase track record [9][11] - The Frito-Lay division contributes significantly to PepsiCo's cash flow, with a recent 6% organic revenue growth, enhancing the overall stability of the company [10][11] - PepsiCo announced its 53rd consecutive dividend increase of 5%, reflecting management's confidence in its dual-engine business model [11][12] Realty Income - Realty Income focuses on providing a reliable monthly dividend, with a dividend yield of 5.63% and an annual dividend of $3.22, having made over 660 consecutive monthly payments [13][14] - The company operates as a Real Estate Investment Trust (REIT) with long-term, triple-net leases, insulating it from inflationary pressures [14][15] - Realty Income's focus on investment-grade tenants in defensive industries ensures a high occupancy rate above 98%, contributing to its financial stability [15][16] Investment Strategy - The companies highlighted demonstrate that stability and predictability are key attributes for long-term investment success, especially in uncertain market conditions [17][18]

Core Viewpoint - Realty Income and W.P. Carey are both prominent players in the net-lease REIT sector, offering similar business models and dividend yields, but they differ significantly in size, portfolio composition, and growth strategies [1][5][12]. Group 1: Similarities - Both Realty Income and W.P. Carey operate in the net-lease space, owning single-tenant properties where tenants cover most property-level expenses [2]. - They have exposure to similar asset classes, including retail, warehouse, and industrial properties, with portfolios spanning North America and Europe [2]. - Both companies have long histories in the net lease market, with W.P. Carey being a pioneer in this area [3]. Group 2: Differences - Realty Income has a market capitalization of approximately $50 billion, while W.P. Carey is valued at just under $14 billion, making Realty Income the industry giant [6]. - Realty Income owns over 15,600 properties compared to W.P. Carey's roughly 1,600 properties, indicating a significant difference in portfolio size [6]. - W.P. Carey has a greater focus on industrial and warehouse assets, which are typically larger, whereas Realty Income emphasizes retail properties, which are generally smaller [7]. Group 3: Dividend Policies - Realty Income has a track record of increasing its dividend for 30 consecutive years, while W.P. Carey recently reduced its dividend in late 2023 after exiting the office sector [9]. - Realty Income pays dividends monthly, while W.P. Carey pays on a quarterly basis, which may appeal differently to investors [9]. - W.P. Carey has resumed increasing its dividend quarterly, with a recent increase of approximately 1.1% (3.5% annualized), while Realty Income's last increase was a modest 0.2% (2.3% annualized) [10][11]. Group 4: Investment Appeal - Realty Income is characterized as a stable, slow-moving giant, appealing to conservative investors, while W.P. Carey is seen as more aggressive and capable of faster growth, attracting more risk-tolerant income investors [12]. - A combined investment in both REITs could provide a balanced approach, leveraging the strengths of each [8].

分组1: Realty Income - Realty Income is a real estate investment trust (REIT) that owns single-tenant net lease properties, with approximately 75% of its rents coming from the retail sector and the remainder from industrial assets and unique properties like casinos [3][4] - The REIT has a diverse tenant base of nearly 1,600 different tenants, which mitigates risks associated with individual retailers [4] - Realty Income has a strong track record, having increased its dividend annually for 30 consecutive years, and currently offers an attractive dividend yield of 5.6% [5] 分组2: Hormel Foods - Hormel Foods is a food manufacturer with a wide selection of packaged food brands, focusing on protein, and is recognized as a Dividend King with over 50 consecutive annual dividend increases [8][10] - The company currently offers a historically high dividend yield of around 3.8%, despite facing challenges such as rising costs and avian flu [9][10] - Hormel has a significant nonprofit shareholder, the Hormel Foundation, which influences its long-term business decisions to sustain dividend growth [11][12] 分组3: Hershey - Hershey is known for its iconic confection brands and a small portfolio of salty snack brands, with a solid dividend history, although its dividend growth is not consistent annually [8] - The company offers a dividend yield of approximately 3.2% and is currently facing headwinds due to rising cocoa prices [9][10] - The Hershey Trust, a major nonprofit shareholder, plays a crucial role in guiding Hershey's decisions to ensure long-term dividend growth [11][12] 分组4: Investment Strategy - The consumer goods sector offers various investment opportunities, with Realty Income serving as a stable foundational investment, while Hormel and Hershey present more aggressive options despite their current challenges [13][14] - The combination of Realty Income's stability with the potential recovery of Hormel and Hershey makes for an attractive investment strategy [13][14]

Core Viewpoint - Investing in high-yielding dividend stocks, particularly Realty Income, is an effective strategy for generating passive income due to its strong financial profile and consistent dividend growth [1][14]. Company Overview - Realty Income is a real estate investment trust (REIT) that offers a high-yielding dividend, currently exceeding 5.5%, significantly higher than the S&P 500's yield of less than 1.5% [4]. - The REIT has a robust financial foundation, supported by a diverse portfolio of over 15,600 rental properties across various sectors, including retail, industrial, and gaming [5][12]. Financial Performance - Realty Income generates approximately 91% of its rental income from industries that are resilient to economic downturns, ensuring stable cash flow [6]. - The company has maintained a conservative payout ratio of about 75% of its adjusted funds from operations (FFO), allowing it to retain nearly $1 billion in excess free cash annually for further investments [7]. Dividend History - Realty Income has a remarkable track record of dividend payments, having declared 660 consecutive monthly dividends since its public listing in 1994, with no suspensions or reductions [9]. - The REIT has increased its dividend payment 131 times since going public, achieving 30 consecutive years of dividend growth at a compound annual growth rate of 4.2% [11]. Growth Potential - Realty Income has expanded its total addressable market (TAM) to $14 trillion by diversifying into various property types, including industrial and gaming, and is targeting $4 billion in acquisitions this year [12][13]. - The company is also developing a credit investment platform and a U.S. private capital fund, which will further enhance its growth opportunities [13].

Core Viewpoint - Retired investors are increasingly focusing on monthly dividend stocks as a way to generate income from their savings, with Realty Income, Agree Realty, and EPR Properties being notable options due to their high yields and unique business models [1][14]. Group 1: Company Overview - Realty Income is the largest net lease REIT with over 15,600 properties, primarily in the retail sector, and has a diversified portfolio that includes industrial assets and other opportunistic categories [5][6]. - Agree Realty is smaller, with around 2,400 properties, and is entirely focused on retail in the U.S., which allows for more significant impacts from smaller investments on growth [8]. - EPR Properties specializes in experiential properties like amusement parks and movie theaters, offering the highest yield at 6.2%, but has faced challenges due to the pandemic and changing consumer preferences [10][11]. Group 2: Dividend Performance - Realty Income has a long history of increasing its monthly dividend, with a 4% annualized increase rate over three decades, resulting in a current yield of 5.6% [7]. - Agree Realty has increased its dividend at approximately 6% annually over the past decade, leading to a total growth of over 60% in that period, with a current yield of 4.1% [9]. - EPR Properties' dividend was cut during the pandemic but is now in growth mode, although it remains below pre-cut levels, reflecting ongoing challenges in its business [12][13]. Group 3: Investment Appeal - Realty Income appeals to conservative investors seeking reliable dividends, while Agree Realty attracts those focused on dividend growth [14]. - EPR Properties may appeal to more aggressive investors interested in turnaround stories, despite its higher risk profile [14].