This real estate company can provide an excellent combination of income and growth for your portfolio. There's no such thing as a totally safe or recession-proof stock, but Realty Income (O -0.73%) is about as close as it gets. In this short video, Certified Financial Planner® Matt Frankel discusses why with colleague Tyler Crowe. *Stock prices used were the morning prices of April 22, 2025. The video was published on April 23, 2025. ...

Group 1: Enbridge - Enbridge shares are up approximately 6% year to date, outperforming the S&P 500, which has entered a correction [2] - The company operates a vast network of pipelines for oil, natural gas, and natural gas liquids, and owns the largest gas utility in North America, serving around 7 million customers [3] - Enbridge has a forward dividend yield of 5.91% and has increased its dividend for 30 consecutive years, with growth opportunities pegged at roughly $50 billion through 2030 [4] Group 2: Realty Income - Realty Income shares have increased nearly 9% in 2025, defying expectations for REITs amid the Fed's interest rate policies [5] - The company owns over 15,600 properties leased to 1,565 clients across 89 industries, including major brands like 7-Eleven and Walmart [6] - Realty Income boasts stability, with approximately 91% of its total rent being resilient to economic downturns, and has never delivered a negative operational return [7] - The REIT has a forward dividend yield of 5.56% and has increased its dividend for 30 consecutive years, averaging an annual growth of 4.3% [8] Group 3: Verizon Communications - Verizon shares are up around 7% year to date, surpassing its total gain for all of 2024 [9] - The company added nearly 1 million postpaid mobile and broadband subscribers in Q4 2024, marking its best quarterly performance in over a decade, with wireless service revenue of $20 billion [10] - Verizon is evolving into an AI company, collaborating with Nvidia and Google Cloud to integrate advanced AI technologies into its network solutions [11] - The company has a forward dividend yield exceeding 6.3% and has increased its dividend for 18 consecutive years [12]

Group 1 - Realty Income Corporation (NYSE: O) was assessed in October 2024, with a buy recommendation at $63.42 and a DCF-implied price of $74.8 per share in the base-case scenario [1] - A conservative target price of $52.7 was established, reflecting assumptions of slower growth and higher financing costs [1] Group 2 - The investment principles emphasize investing in companies with consistent earning power and durable competitive advantages [2] - Preference is given to companies that generate substantial cash flow and consistently earn above-average returns on capital [2] - Companies with conservative leverage and an appropriate level of cash to capitalize on market volatility are favored [2]

In the latest market close, Realty Income Corp. (O) reached $58.52, with a +0.97% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 2.51%. Meanwhile, the Dow experienced a rise of 2.66%, and the technology-dominated Nasdaq saw an increase of 2.71%. Heading into today, shares of the real estate investment trust had gained 2.99% over the past month, outpacing the Finance sector's loss of 7.03% and the S&P 500's loss of 8.86% in that time. Investors will be e ...

Core Insights - Realty Income (NYSE: O) has remained stable despite a 12% market dip, reinforcing its reputation as a defensive investment during turbulent times [1] Company Analysis - Realty Income is recognized for its solid performance and defensive characteristics, making it a reliable choice for investors seeking stability [1] - The company demonstrates consistent revenue growth and credible guidance, which are critical for long-term investment [1] Market Positioning - Realty Income benefits from a strong technology moat and first-mover advantage, contributing to its competitive positioning [1] - The company has established network effects that facilitate exponential growth and market penetration in high-growth industries [1] Financial Health - Realty Income showcases sustainable revenue growth with efficient cash flow management, indicating strong financial health [1] - The company maintains a robust balance sheet and a long-term survival runway, which are essential for navigating market challenges [1] Investment Strategy - The investment methodology focuses on identifying high-conviction opportunities with a strong margin of safety to protect against capital impairment [1] - Portfolio construction includes core positions (50-70%) in stable plays, growth bets (20-40%) in high-risk opportunities, and speculative investments (5-10%) in disruptive innovations [1]

Core Viewpoint - Realty Income is a real estate investment trust (REIT) that has consistently delivered dependable monthly dividends, with a current dividend yield exceeding 5.5% due to a recent 10% decline in share price from its 52-week high [1][3]. Dividend Performance - Realty Income has declared its 658th consecutive monthly dividend since its founding in 1969 and has raised its dividend 130 times since its public listing in 1994 [3]. - The REIT has increased its dividend for 110 straight quarters and 30 consecutive years, achieving a compound annual growth rate of 4.3% over the past three decades [3]. Investment Strategy - The company invests in a diversified real estate portfolio net leased to leading companies, providing stable rental income as tenants cover all operating expenses [4]. - Realty Income focuses on long-term leases with annual rental escalation clauses, ensuring durable rental income that increases each year [4]. Risk Management - Approximately 91% of Realty Income's rent comes from tenants in resilient sectors such as grocery stores and home improvement centers, which are less affected by economic downturns and e-commerce pressures [5]. - The REIT diversifies its portfolio by tenant, property type, and geography, with its top tenant contributing only 3.5% of total rent [5]. Growth Strategy - Realty Income invests billions annually to acquire additional income-generating net lease properties, which is a key driver of its dividend growth [6]. - The company maintains a conservative dividend payout ratio of less than 75% of its adjusted funds from operations, allowing for significant excess cash flow for reinvestment [7]. Financial Strength - Realty Income has an elite balance sheet, being one of only eight REITs in the S&P 500 with bond ratings of A3/A- or higher, facilitating access to lower-cost funding for acquisitions [8]. - The REIT engages in sale-leaseback transactions, often partnering with tenants for initial real estate transactions and subsequently acquiring additional properties [9]. Future Outlook - Many existing clients still own some of their real estate, providing Realty Income with a long runway for expanding its global real estate portfolio [10]. - The company is viewed as a foundational holding for investors seeking a reliable stream of passive income that is expected to continue rising [12].

Group 1 - The primary goal of the "High Income DIY Portfolios" Marketplace service is to provide high income with low risk and capital preservation for DIY investors [1] - The service offers seven portfolios designed for income investors, including retirees or near-retirees, featuring 3 buy-and-hold portfolios, 3 rotational portfolios, and a 3-bucket NPP model portfolio [1] - The portfolios include two high-income portfolios, two dividend growth investment (DGI) portfolios, and a conservative NPP strategy portfolio aimed at low drawdowns and high growth [1]

Core Viewpoint - Realty Income has shown resilience in 2025, outperforming the S&P 500 with a 7.2% gain year to date, and a 9.3% gain when dividends are reinvested, compared to the S&P 500's total return of 10.3% [1] Group 1: Investment Performance - Realty Income's recent price gain is a rebound from previous underperformance during the COVID-19 pandemic, where it lagged behind the broader market over the last five years [2] - The company has a history of 658 uninterrupted dividend payouts, currently offering an attractive yield of 5.5% [4] Group 2: Real Estate Investment - Realty Income's business model is centered around high-quality real estate, which is considered a reliable wealth-creation tool [4] - The company holds 339 million square feet of real estate, primarily in prime retail locations across eight countries [6] - The addressable market for Realty Income is substantial, valued at $5.4 trillion in America and $8.5 trillion in Europe, where the company is expanding [6]

Company Performance - Realty Income Corp. (O) ended the latest trading session at $57.27, reflecting a +0.46% adjustment from the previous day's close, outperforming the S&P 500 which lost 2.24% [1] - Over the last month, Realty Income's shares increased by 0.09%, while the Finance sector and S&P 500 experienced losses of 3.21% and 4.17% respectively [1] Upcoming Earnings - The upcoming earnings report for Realty Income Corp. is scheduled for May 5, 2025, with an expected EPS of $1.06, representing a 2.91% increase from the prior-year quarter [2] - The consensus estimate for revenue is projected at $1.38 billion, indicating a 9.26% increase compared to the same quarter of the previous year [2] Fiscal Year Estimates - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $4.29 per share and revenue of $5.57 billion, reflecting changes of +2.39% and +5.74% respectively from the previous year [3] - Recent changes to analyst estimates for Realty Income Corp. are important as they often indicate near-term business trends, with positive revisions suggesting optimism about the company's outlook [3] Valuation Metrics - Realty Income Corp. has a Forward P/E ratio of 13.3, which is a premium compared to the industry average Forward P/E of 12.62 [6] - The company currently trades at a PEG ratio of 2.14, which is lower than the average PEG ratio of 2.81 for the REIT and Equity Trust - Retail industry [7] Industry Ranking - The REIT and Equity Trust - Retail industry, part of the Finance sector, holds a Zacks Industry Rank of 48, placing it in the top 20% of over 250 industries [7] - The Zacks Industry Rank assesses the strength of industry groups by calculating the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Insights - REITs experience cyclical movements in profits and prices, influenced by the space market cycle related to supply and demand dynamics [1]. Group 1: REITs Characteristics - Profits and prices of REITs often move in cycles, indicating a relationship with market conditions [1]. - The space market cycle is a significant factor to consider when analyzing REIT performance [1]. Group 2: Analyst Background - The analyst has a CFA charter and CIPM certification, with experience in investment performance standards compliance [1]. - Previous experience includes owning and operating a small business, focusing on revenue diversification and cost management [1]. - The analyst employs a fundamental, bottom-up research approach, emphasizing the analysis of financial statements and true economic earnings [1]. Group 3: Investment Philosophy - The investment strategy is conservative and long-term, with a focus on companies that demonstrate above-average sustainable profitability [1]. - The portfolio is designed to rely on dividends for expense coverage, indicating a preference for income-generating investments [1].