4 Reasons to Buy Realty Income (O) Stock Like There's No Tomorrow

Core Viewpoint - Realty Income (NYSE: O) remains a strong investment option for income-seeking investors despite a challenging market environment characterized by high valuations and macroeconomic uncertainties [2]. Group 1: Company Overview - Realty Income is one of the largest real estate investment trusts (REITs) globally, with over 15,500 properties across the U.S., the U.K., and seven European countries [2]. Group 2: Occupancy Rates - Realty Income has maintained high occupancy rates, never dipping below 96% since its IPO in 1994, achieving a year-end occupancy rate of 98.6% in 2023, 98.7% in 2024, and 98.9% in 2025 [7][6]. Group 3: Dividend Reliability - The company pays monthly dividends, a rarity among REITs, and has increased its payout 133 times since its IPO, currently offering a forward yield of 5% [8]. - Realty Income's adjusted funds from operations (AFFO) per share increased by 2% in 2023, 5% in 2024, and is projected to reach $4.28 in 2025, with expectations of further growth to $4.38-$4.42 in 2026, comfortably covering its forward dividend rate of $3.24 per share [9]. Group 4: Interest Rate Impact - Realty Income faced challenges during periods of rising interest rates in 2022 and 2023, which increased property acquisition costs and made its dividends less attractive compared to higher yields on risk-free investments [10]. - Following six cuts to the Fed's benchmark rates in 2024 and 2025, there has been a renewed interest in high-quality REITs like Realty Income, a trend that may continue with potential leadership changes at the Federal Reserve [11].