This Reliable Dividend Stock Is Up Over 8,851% Since Its IPO. Here's Why It's a Buy Now.

Core Insights - Realty Income has significantly outperformed the S&P 500 index since its IPO in 1994, achieving a total return of 8,780% compared to the benchmark's performance [5][6] - The company has a robust portfolio of 15,627 commercial properties, utilizing a net lease structure that transfers operational costs to tenants [8] - Realty Income's financial health is strong, with a recent adjusted funds from operations (FFO) of $1.06 per share, comfortably exceeding its dividend commitment [11] Company Performance - Realty Income has consistently raised its monthly dividend for over 30 years, with the latest increase marking the 131st raise to $0.269 per share [10] - The company has a lease renewal recapture rate of 103% since 1996, indicating strong tenant retention and the potential for rent increases [9] - The average remaining lease term is over nine years, providing predictable cash flows for the company [9] Competitive Advantage - Realty Income benefits from high credit ratings (A3 from Moody's and A- from S&P Global), allowing it to borrow at favorable terms, including €1.3 billion with an average yield to maturity of 3.69% [12] - The company operates in a market where less than 4% of the addressable market for net lease REITs is owned by Realty Income and its peers, indicating significant growth potential [14] - Realty Income's ability to access low-cost capital gives it a competitive edge over smaller peers, enabling it to attract high-quality tenants [13] Market Outlook - With a favorable competitive position and a large addressable market, Realty Income is well-positioned to continue raising its dividend every three months for the foreseeable future [15] - The current dividend yield stands at 5.6%, making it an attractive option for investors seeking reliable income [15]