Realty Income, The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income.
Realty Income Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$73.87|
|52 Week High||US$57.00|
|52 Week Low||US$74.56|
|1 Month Change||11.15%|
|3 Month Change||3.98%|
|1 Year Change||23.47%|
|3 Year Change||20.51%|
|5 Year Change||24.70%|
|Change since IPO||823.38%|
Recent News & Updates
Realty Income's Secret Competitive Advantage Revealed
In previous articles, I’ve highlighted Realty Income's scale advantage. That and its cost of capital advantage. However, today I will provide you with another secret behind the dividend machine. Better yet, this article is a “twofer,” with a bonus pick revealed.
Realty Income Corp: Let It Pay Your Rent
My last article analyzed Realty Income Corp (O) with a focus on its long-term profitability, arguing that O represents a quality business for sale at a fair price. This article switches the focus to the near term and analyzes O under the context of several contemporary market risks currently unfolding: inflation, interest rate, and market valuation. The conclusion is that O is an investment that is not only shielded from these risks but also helps to fight against these risks.
4 Reasons Realty Income Is The Perfect High-Yield Dividend Aristocrat For Troubled Times
The markets are wobbling as the US barrels towards its first debt default in history, which Moody's predict will cause another Great Recession. The secret to a happy and comfortable retirement is generous, and rock-steady dividend income, that's safe in all economic and market conditions. Realty Income is an Ultra SWAN quality monthly paying dividend aristocrat that's raised its dividend every year through three recessions, a financial crisis and interest rates as high as 8%. Realty was founded in 1969, and has thrived through eight recessions, double-digit inflation, and 16% interest rates. This exceptionally well managed REIT is built to last. Today 4.4% yielding Realty Income is about 4% undervalued, a classic Buffett-style "wonderful company at a fair price". Analysts expect Realty's $12 trillion growth market to allow it to grow 3% to 6% for decades to come, and likely generate double-digit long-term returns that can help you both retire rich, and stay rich in retirement, no matter what happens with the economy in the future.
Realty Income: Steady Conservative Monthly Income That Has Increased For 25 Years
Realty Income estimated forward CAGR of 10% is above average and will give you safe, conservative growth with the increasing need for retail real estate as the worldwide economy grows. Realty Income Corp. has increased its dividend for 25 years in a row (a dividend aristocrat) and presently has a yield of 4.2%, which is above average. Realty Income Corp. is diversified in the commercial real estate sector, both in location and type of property.
|O||US REITs||US Market|
Return vs Industry: O underperformed the US REITs industry which returned 35.3% over the past year.
Return vs Market: O underperformed the US Market which returned 30.3% over the past year.
Stable Share Price: O is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: O's weekly volatility (2%) has been stable over the past year.
About the Company
Realty Income, The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with our commercial clients. To date, the company has declared 608 consecutive common stock monthly dividends throughout its 52-year operating history and increased the dividend 109 times since Realty Income's public listing in 1994 (NYSE: O).
Realty Income Fundamentals Summary
|O fundamental statistics|
Is O overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|O income statement (TTM)|
|Cost of Revenue||US$112.78m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 01, 2021
|Earnings per share (EPS)||0.93|
|Net Profit Margin||20.88%|
How did O perform over the long term?See historical performance and comparison
3.8%Current Dividend Yield
Does O pay a reliable dividends?See O dividend history and benchmarks
|Realty Income dividend dates|
|Ex Dividend Date||Nov 01 2021|
|Dividend Pay Date||Nov 15 2021|
|Days until Ex dividend||5 days|
|Days until Dividend pay date||19 days|
Does O pay a reliable dividends?See O dividend history and benchmarks
Is Realty Income undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: O ($73.87) is trading below our estimate of fair value ($165.95)
Significantly Below Fair Value: O is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: O is poor value based on its PE Ratio (79.7x) compared to the US REITs industry average (51.9x).
PE vs Market: O is poor value based on its PE Ratio (79.7x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: O is poor value based on its PEG Ratio (4.6x)
Price to Book Ratio
PB vs Industry: O is overvalued based on its PB Ratio (2.4x) compared to the US REITs industry average (2.1x).
How is Realty Income forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: O's forecast earnings growth (17.5% per year) is above the savings rate (2%).
Earnings vs Market: O's earnings (17.5% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: O's earnings are forecast to grow, but not significantly.
Revenue vs Market: O's revenue (11.3% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: O's revenue (11.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: O's Return on Equity is forecast to be low in 3 years time (5.2%).
How has Realty Income performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: O has a large one-off loss of $148.9M impacting its June 30 2021 financial results.
Growing Profit Margin: O's current net profit margins (20.9%) are lower than last year (30.3%).
Past Earnings Growth Analysis
Earnings Trend: O's earnings have grown by 8.6% per year over the past 5 years.
Accelerating Growth: O's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: O had negative earnings growth (-25.5%) over the past year, making it difficult to compare to the REITs industry average (8.3%).
Return on Equity
High ROE: O's Return on Equity (3.1%) is considered low.
How is Realty Income's financial position?
Financial Position Analysis
Short Term Liabilities: O's short term assets ($868.5M) do not cover its short term liabilities ($927.1M).
Long Term Liabilities: O's short term assets ($868.5M) do not cover its long term liabilities ($9.2B).
Debt to Equity History and Analysis
Debt Level: O's debt to equity ratio (77.7%) is considered high.
Reducing Debt: O's debt to equity ratio has increased from 72.6% to 77.7% over the past 5 years.
Debt Coverage: O's debt is not well covered by operating cash flow (12.8%).
Interest Coverage: O's interest payments on its debt are not well covered by EBIT (2.7x coverage).
What is Realty Income current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: O's dividend (3.83%) is higher than the bottom 25% of dividend payers in the US market (1.28%).
High Dividend: O's dividend (3.83%) is in the top 25% of dividend payers in the US market (3.48%)
Stability and Growth of Payments
Stable Dividend: O's dividends per share have been stable in the past 10 years.
Growing Dividend: O's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (87.5%), O's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: O's dividends in 3 years are forecast to be covered by earnings (74.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sumit Roy (51 yo)
Mr. Sumit Roy serves as President at Realty Income Corporation since November 2015 and Chief Executive Officer and Director since October 16, 2018. Mr. Roy served as the Chief Operating Officer of Realty I...
CEO Compensation Analysis
Compensation vs Market: Sumit's total compensation ($USD7.79M) is below average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Sumit's compensation has been consistent with company performance over the past year.
Experienced Management: O's management team is considered experienced (3.4 years average tenure).
Experienced Board: O's board of directors are considered experienced (9.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.8%.
Realty Income Corporation's employee growth, exchange listings and data sources
- Name: Realty Income Corporation
- Ticker: O
- Exchange: NYSE
- Founded: 1969
- Industry: Retail REITs
- Sector: Real Estate
- Implied Market Cap: US$28.797b
- Market Cap: US$28.764b
- Shares outstanding: 389.85m
- Website: https://www.realtyincome.com
Number of Employees
- Realty Income Corporation
- 11995 El Camino Real
- San Diego
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/25 23:12|
|End of Day Share Price||2021/10/25 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.