The stock is up about 7% this year, and investors get reliable monthly income. Stubbornly high interest rates have made investing in property more of a challenge -- there's a huge difference in your mortgage when you're weighing a sub-3% interest rate with one that's 6%. That's why I also appreciate Realty Income (O -0.43%) as perhaps one of the best real estate investment trusts (REITs) you can buy. But does it make sense to invest in Realty Income today? In a world of high interest rates, concerns about t ...

Analyst's Disclosure:I/we have a beneficial long position in the shares of WHR, OLP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. At the recent July Federal Open Market Committee, or "FOMC," meeting, Jerome Powell announced that the Federal Reserve decided to hold inte ...

Core Viewpoint - Realty Income is recognized for its consistent monthly dividend increases, appealing particularly to retirees seeking income that keeps pace with inflation [1][3][16] Financial Performance - Realty Income has maintained a strong dividend consistency grade of A+ with 31 consecutive years of dividend growth and payments [2] - The company reported total revenues per share increasing from $4.32 in 2016 to an estimated $6.09 in 2024, reflecting a steady growth trajectory [7] - The Adjusted Funds From Operations (AFFO) per share has shown stability, with a growth rate of 4.68% over the past decade [10] Dividend Sustainability - Realty Income currently trades at a 5.6% dividend yield and a 7.3% forward AFFO yield, indicating that the forward AFFO comfortably covers the annualized dividend rate of $3.228 per share [14] - The company is expected to continue its history of gradual dividend increases, supported by stable cash flows [16] Market Position and Strategy - As a triple net lease REIT, Realty Income has secured a significant portion of its revenue for the long term, allowing for high margins and predictable earnings [4] - The company has utilized debt strategically, maintaining an A- credit rating, which supports its business model while managing interest rate challenges [11][12] Growth Outlook - Realty Income may face challenges in growth due to higher interest rates affecting its weighted average cost of capital, but it has demonstrated resilience in navigating these conditions [11][16] - Future growth may also be impacted by the ability to acquire properties at favorable capitalization rates, which has historically contributed to its growth [13]

Core Viewpoint - Realty Income Corporation (O) is expected to report its second-quarter 2025 results on August 6, with adjusted funds from operations (AFFO) estimated at $1.06 per share and revenues at $1.40 billion, indicating a year-over-year revenue increase of 4.2% but no growth in AFFO per share [1][2][7]. Financial Performance - The Zacks Consensus Estimate for second-quarter 2025 AFFO per share has remained unchanged at $1.06, suggesting no growth year over year [2]. - The estimated revenues for the current year are projected at $5.61 billion, reflecting a 6.5% increase year over year [2]. - Over the past four quarters, Realty Income's AFFO per share has surpassed estimates once, met them twice, and missed once [4]. Operational Insights - Realty Income maintains a high occupancy rate of 98.5%, which is expected to remain above 98% for the full year, supporting stable cash flow and earnings [9]. - The company's diversified portfolio includes essential-service tenants, which ensures dependable rental income [8][10]. - Strategic expansions into sectors like data centers and gaming, along with European market entry, are anticipated to contribute to revenue growth [10]. Strategic Initiatives - Realty Income's investments in Encore Boston Harbor and Bellagio Las Vegas, along with a partnership with Digital Realty, highlight its focus on long-term growth and diversification [10]. - The company targets $4 billion in investments for 2025, indicating a proactive approach to portfolio enhancement [10]. Financial Health - As of March 31, 2025, Realty Income holds strong investment-grade credit ratings (A3 from Moody's and A- from S&P), indicating a solid financial position [11]. - The company has a manageable net debt of approximately $27.64 billion and a well-structured debt maturity schedule, which enhances financial flexibility [11][13]. Market Performance - Realty Income's shares have increased by 7.6% year-to-date, closing at $57.45, while the Zacks REIT and Equity Trust - Retail industry has declined by 10.0% [14]. - The stock is trading at a forward 12-month price-to-FFO of 13.19X, which is below the industry average of 14.58X, suggesting a potential valuation opportunity [16]. Investment Appeal - Realty Income offers a blend of income stability and long-term growth potential, supported by its diversified portfolio and essential-service tenant base [17]. - The company has a dividend yield of 5.62%, making it attractive for income-focused investors [17].

Three time-tested companies with rock-solid payouts can pad investors' pocketbooks for a long time to come. Over the last century, no asset class has generated a higher average annualized return for investors than stocks. Though there are countless way for investors to put their money to work on Wall Street, few have been as historically successful as buying and holding high-quality dividend stocks. Companies that pay a regular dividend to their shareholders typically check all the right boxes. Specifically ...

These real estate investment trusts are well-positioned to deliver heaps of passive income. The first quarter of earnings reports following the Trump administration's new taxes on imported goods have mostly been announced already. So far, the only thing we can say for certain is that the tariffs are going to sting. Exactly how much they'll hurt is still anybody's guess. If an unpredictable trade war has you feeling queasy about the overall stock market, consider adding shares of Realty Income (O 1.28%) and ...

Core Viewpoint - Investing in real estate investment trusts (REITs) is an effective strategy for generating passive dividend income due to their ownership of income-generating real estate portfolios Group 1: Mid-America Apartment Communities - Mid-America Apartment Communities has a strong dividend history, declaring its 126th consecutive quarterly dividend, with an annual payout of $6.06 per share, yielding over 4% at recent share prices [4] - The demand for apartments in the Sun Belt region is strong, with limited new supply expected, which should maintain high occupancy levels and drive rent growth [5] - The company has nearly $1 billion in apartment development projects underway and recently completed four projects and acquired two communities for nearly $575 million [6][7] Group 2: Invitation Homes - Invitation Homes has consistently increased its dividend since its IPO in 2017, currently paying $0.29 per share quarterly, yielding close to 4% [8] - The REIT focuses on single-family rental properties in high-demand markets, achieving a rent growth of 4% in the second quarter [9] - The company invested $350 million to acquire over 1,000 homes in the second quarter and provided $33 million in funding for future development, supporting its dividend growth [10] Group 3: Realty Income - Realty Income has a notable dividend track record, increasing its monthly dividend 131 times since its public listing in 1994, with a current payment of $0.269 per share monthly, yielding nearly 6% [11] - The REIT benefits from stable rental income through long-term triple-net leases with major companies, which cover all operating costs [12] - Realty Income plans to invest about $4 billion this year to expand its portfolio, enabling continued increases in its high-yielding monthly dividend [13] Group 4: Investment Opportunity - Mid-America Apartment Communities, Invitation Homes, and Realty Income are identified as high-yielding REITs with steadily rising dividends, making them attractive options for passive income this month [14]

Core Viewpoint - The article highlights three top dividend stocks for August, emphasizing their strong dividend yields and potential for total returns. Group 1: Enbridge - Enbridge is described as a "low-risk" and "utility-like" stock, making it attractive in the current market environment [3] - The company operates the world's longest oil and liquids transportation system, with over 18,000 miles of crude oil pipeline and nearly 19,000 miles of natural gas pipeline, generating steady cash flow [4] - Enbridge has become the largest natural gas utility in North America, delivering approximately 9.3 billion cubic feet of natural gas per day to around 7 million customers [5] - The company has increased its dividend for 30 consecutive years, with a forward dividend yield exceeding 6% and projected average annual growth of around 5% through the decade [6] Group 2: Enterprise Products Partners - Enterprise Products Partners LP offers a higher distribution yield of 6.93% and has increased its distribution for 26 consecutive years [8] - The company has maintained a double-digit percentage return on invested capital (ROIC) and solid cash flow for two decades, indicating relatively low risk [9] - Growth prospects are bolstered by the European Union's agreement to increase natural gas purchases from the U.S., utilizing the company's extensive pipeline network of over 50,000 miles [10] - The forward price-to-earnings ratio of approximately 11.2 is lower than many peers and less than half that of the S&P 500, suggesting favorable valuation [10] Group 3: Realty Income - Realty Income is one of the largest real estate investment trusts (REITs), owning 15,627 properties across eight countries, with a diversified portfolio of nearly 1,600 tenants from 91 industries [11] - The REIT has a strong track record, delivering an average annual total return of 13.6% since its NYSE listing in 1994, with positive operational returns each year [12] - Realty Income has increased its monthly dividend for 30 consecutive years, with a forward dividend yield of 5.68% [12] - The growth prospects in Europe are particularly attractive, with an addressable market of $8.5 trillion and limited competition [12]

Core Viewpoint - Realty Income is the largest net lease REIT with a 5.6% dividend yield, significantly higher than the market average of 1.2% and the average REIT yield of 3.9% [1][2] Group 1: Company Size and Growth - Realty Income has a market capitalization of approximately $50 billion, making it significantly larger than its peers in the net lease REIT sector [3] - The company's size presents challenges, as substantial new property acquisitions are required to impact financial performance, leading to expected slow growth [5] - However, Realty Income's size also allows it to pursue larger deals, act as an industry consolidator, and access Wall Street more easily, suggesting steady growth potential through contractual rent increases and property acquisitions [6] Group 2: Expansion Strategies - Realty Income is actively expanding its growth opportunities by entering the European market, which is still developing the net lease approach, thus broadening its potential property acquisitions [7] - The company is diversifying its property market focus beyond retail and industrial sectors to include casinos and data centers, seeking new growth avenues [8] - Recently, Realty Income has begun offering loans and asset management services to institutional investors, leveraging its scale to explore new areas for sustained growth [9] Group 3: Commitment to Dividends - Realty Income is aware of its identity as a large company and the expectations of its investors for reliable dividends, which is central to its business model [10] - The company has branded itself as "The Monthly Dividend Company," emphasizing its commitment to providing consistent dividends [10] - This focus on reliable dividend payments positions Realty Income as a foundational investment for long-term investors, allowing them to consider more aggressive dividend stocks alongside it [12]

The upcoming report from Realty Income Corp. (O) is expected to reveal quarterly earnings of $1.06 per share, indicating no change from the year-ago quarter. Analysts forecast revenues of $1.4 billion, representing an increase of 4.2% year over year.The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a company's ...