Realty Income-This Dependable 5.6%-Yielding Dividend Stock Continues Its Steady Growth

Core Viewpoint - Realty Income has consistently focused on investing to provide a reliable and growing dividend, successfully raising its dividend 129 times since its public listing in 1994, including 110 consecutive quarters [1] Financial Performance - Realty Income reported $4.19 per share of adjusted funds from operations (FFO) for 2024, marking a 4.8% increase from 2023, extending its growth streak to 14 years [3] - The REIT raised its dividend by approximately 4.5% over the past year, resulting in a yield exceeding 5.6% [3] Growth Drivers - The acquisition of Spirit Realty for$ 9.3 billion in January was a significant factor, contributing over 2.5% accretion to adjusted FFO per share [4] - Realty Income invested $3.9 billion in nearly 550 properties across the U.S. and Europe, achieving a weighted average initial cash yield of 7.4% [5] - The REIT's long-term net leases allowed for low single-digit annual rent escalations, with a rent recapture rate of 105.6%, indicating a 5.6% average rental increase on re-leased units [6] Future Outlook - Realty Income anticipates adjusted FFO to rise to between$ 4.22 and $4.28 per share in 2025, reflecting growth of up to 2% [7] - The REIT expects same-store rent growth of approximately 1% and plans for$ 4 billion in acquisitions to support this growth [7] - The company has a history of conservative guidance, with actual acquisition volumes exceeding initial forecasts in the past year [8] Strategic Initiatives - The launch of a private capital fund management platform is expected to enhance growth and investment returns through management fee income [9] - Successful capital raising for this fund could accelerate growth further [9] Investment Appeal - Realty Income has only experienced one year without growth in adjusted FFO per share and has increased its dividend annually for three decades, making it an attractive option for investors seeking steady passive income growth [10]