This Stock Is Up Over 8,400% Since Its IPO. Here's Why It's Still a Buy.

Core Viewpoint - Realty Income, a real estate investment trust (REIT), focuses on providing steady dividends while also showcasing growth potential, with total returns exceeding 8,400% since its IPO in 1994 [2] Company Overview - Realty Income specializes in single-tenant commercial properties, owning over 15,600 buildings rented to tenants under net leasing arrangements, which stabilize cash flows as tenants cover maintenance, insurance, and property taxes [4] - The tenant list includes major companies like Home Depot, Dollar Tree, FedEx, and Wynn Resorts, contributing to the company's stability [4] Growth Potential - Despite being down about 25% from its pre-pandemic peak due to higher interest rates, Realty Income has shown consistent growth over its 31-year history [5] - The company estimates a global addressable market of $14 trillion, with its revenue at $5.28 billion over the trailing 12 months, indicating significant growth potential [6] Recent Developments - Realty Income has continued to develop new properties and acquire peers, including the purchase of Spirit Realty, which added over 2,000 properties [7] - The company maintains a high occupancy rate of 98.5%, suggesting that expansion will likely persist even in a high-interest-rate environment [7] Dividend Performance - Realty Income has been distributing monthly dividends since 1994, with annual payouts currently exceeding $3.22 per share, resulting in a dividend yield of 5.8%, significantly higher than the S&P 500's average yield of around 1.3% [8] - The funds from operations (FFO) income for the 12 months ending in Q1 2025 was $4.22, well above dividend obligations, supporting the likelihood of continued payout increases [9] Investment Outlook - Despite challenges from higher interest rates, Realty Income's growth story is expected to continue, supported by its vast addressable market and stable dividend growth [10][11]