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Realty Income (O) Announces Increase in Monthly Dividend
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Retail REIT Realty Income Corporation (O - Free Report) recently announced a hike in its common stock monthly cash dividend, giving shareholders another reason to rejoice. This marks the company’s 94th dividend increase since its NYSE listing in 1994. The company will now pay 21.25 cents per share against 21.20 cents paid earlier.
Realty Income will pay the increased dividend on Jan 12, 2018, to shareholders of record as of Jan 2, 2018. The latest dividend rate depicts an annualized amount of $2.55 per share versus the prior rate of $2.544 per share.
Realty Income remains committed to increasing shareholders’ wealth. The company enjoys a trademark on the phrase “The Monthly Dividend Company” and the January 2018 dividend payment not only marks its 570 consecutive monthly dividend payouts throughout its 48-year operating history, but also 81 consecutive quarterly increases.
In fact, the company has generated a compound average annual dividend growth of around 4.6% since its listing on the NYSE. Given its financial position and lower debt-to-equity ratio compared to that of the industry, this dividend rate is likely to be sustainable.
Realty Income’s portfolio comprised 5,062 properties, situated in 49 states and Puerto Rico as of Sep 30, 2017, containing more than 86.4 million leasable square feet of space. These properties are leased to 251 different commercial tenants, belonging to 47 separate industries. The company leases its properties under long-term, net lease agreements.
Notably, shrinking footfall at malls amid shift of consumers toward online channels, store closures and bankruptcy of retailers has emerged as a pressing concern, of late, for most retail REITs. However, not all are equally facing the brunt, with some of these companies managing to book gains even in the tepid scenario, thanks to the business models.
In fact, this freestanding retail REIT — Realty Income — derives more than 90% of its annualized retail rental revenues from tenants belonging to service, non-discretionary and low-price retail business. Such businesses are less susceptible to economic recessions and competition from Internet retailing.
In addition to the above, Realty Income’s solid underlying real estate quality and prudent underwriting at acquisition have helped the company maintain high occupancy levels consistently. In fact, since 1996, the company’s occupancy level has never been below 96%. Additionally, its same-store rent growth displayed limited operational volatility.
The company also continues to maintain a conservative capital structure. It has modest leverage, robust liquidity, and continued access to attractively priced equity and debt capital. In addition, it has a well-laddered debt maturity schedule.
However, Realty Income’s substantial exposure to single-tenant assets raises its risks associated with tenant default. Further, generation of notable rental revenues from assets leased to drug stores and rate hike add to its woes.
Shares of Realty Income have underperformed the industry it belongs to, in a month’s time. This Zacks Rank #3 (Hold) company’s shares have descended 2.1%, while the industry recorded growth of 0.3% during this time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, solid dividend payouts are arguably the biggest enticement for REIT investors. Some other REITs which announced dividend hikes recently include Alexandria Real Estate Equities (ARE - Free Report) , SL Green Realty (SLG - Free Report) and Mid-America Apartment Communities (MAA - Free Report) .
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Realty Income (O) Announces Increase in Monthly Dividend
Retail REIT Realty Income Corporation (O - Free Report) recently announced a hike in its common stock monthly cash dividend, giving shareholders another reason to rejoice. This marks the company’s 94th dividend increase since its NYSE listing in 1994. The company will now pay 21.25 cents per share against 21.20 cents paid earlier.
Realty Income will pay the increased dividend on Jan 12, 2018, to shareholders of record as of Jan 2, 2018. The latest dividend rate depicts an annualized amount of $2.55 per share versus the prior rate of $2.544 per share.
Realty Income remains committed to increasing shareholders’ wealth. The company enjoys a trademark on the phrase “The Monthly Dividend Company” and the January 2018 dividend payment not only marks its 570 consecutive monthly dividend payouts throughout its 48-year operating history, but also 81 consecutive quarterly increases.
In fact, the company has generated a compound average annual dividend growth of around 4.6% since its listing on the NYSE. Given its financial position and lower debt-to-equity ratio compared to that of the industry, this dividend rate is likely to be sustainable.
Realty Income’s portfolio comprised 5,062 properties, situated in 49 states and Puerto Rico as of Sep 30, 2017, containing more than 86.4 million leasable square feet of space. These properties are leased to 251 different commercial tenants, belonging to 47 separate industries. The company leases its properties under long-term, net lease agreements.
Notably, shrinking footfall at malls amid shift of consumers toward online channels, store closures and bankruptcy of retailers has emerged as a pressing concern, of late, for most retail REITs. However, not all are equally facing the brunt, with some of these companies managing to book gains even in the tepid scenario, thanks to the business models.
In fact, this freestanding retail REIT — Realty Income — derives more than 90% of its annualized retail rental revenues from tenants belonging to service, non-discretionary and low-price retail business. Such businesses are less susceptible to economic recessions and competition from Internet retailing.
In addition to the above, Realty Income’s solid underlying real estate quality and prudent underwriting at acquisition have helped the company maintain high occupancy levels consistently. In fact, since 1996, the company’s occupancy level has never been below 96%. Additionally, its same-store rent growth displayed limited operational volatility.
The company also continues to maintain a conservative capital structure. It has modest leverage, robust liquidity, and continued access to attractively priced equity and debt capital. In addition, it has a well-laddered debt maturity schedule.
However, Realty Income’s substantial exposure to single-tenant assets raises its risks associated with tenant default. Further, generation of notable rental revenues from assets leased to drug stores and rate hike add to its woes.
Shares of Realty Income have underperformed the industry it belongs to, in a month’s time. This Zacks Rank #3 (Hold) company’s shares have descended 2.1%, while the industry recorded growth of 0.3% during this time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, solid dividend payouts are arguably the biggest enticement for REIT investors. Some other REITs which announced dividend hikes recently include Alexandria Real Estate Equities (ARE - Free Report) , SL Green Realty (SLG - Free Report) and Mid-America Apartment Communities (MAA - Free Report) .
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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