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1 Magnificent S&P 500 Dividend Stock Down 25% to Buy and Hold Forever
Realty IncomeRealty Income(US:O) The Motley Foolยท2025-08-13 08:55

Group 1 - Realty Income's stock has not recovered from the pandemic as the S&P 500 has, trading down approximately 25% from pre-pandemic highs, presenting an opportunity for income investors [2][5] - Realty Income operates as a net lease REIT, focusing primarily on single-tenant retail properties, with a portfolio of over 15,600 properties, making it the largest competitor in its sector [3][4] - The company has maintained high occupancy levels, not falling below 97.9% in 2020, and has seen improvements since then, despite concerns during the pandemic [5] Group 2 - The primary concern affecting Realty Income's stock is rising interest rates, which complicate the REIT's ability to acquire new properties due to the need for external capital [6][7] - Realty Income's size and investment-grade rated balance sheet provide it with advantageous access to capital markets, mitigating some fears regarding slow growth [7] - The company has a strong history of increasing dividends annually for 30 years, suggesting resilience in various interest rate environments [8] Group 3 - Although dividend growth may slow in the near term due to rising interest costs, Realty Income offers a 5.6% dividend yield, making it an attractive investment for income-focused investors [9]