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Realty Income (O) Cheers Investors With 121st Dividend Hike
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Boosting shareholders’ wealth, Realty Income Corporation (O - Free Report) recently announced an increase in its common monthly cash dividend to 25.55 cents per share from 25.50 cents paid out earlier. This marked its 121st common stock monthly dividend hike since its listing on the NYSE in 1994.
The increased dividend will be paid out on Jul 14 to shareholders on record as of Jul 3, 2023. The latest dividend rate marks an annualized amount of $3.066 per share compared with the previous rate of $3.06.
Post this dividend hike, O’s annual dividend yield now comes to 5.01% based on the company’s share price of $61.19 on Jun 13, 2023. Moreover, the company has increased its dividend 23 times in the last five years and has a five-year annualized dividend growth rate is 2.98%. Check Realty Income’s dividend history here.
Per Sumit Roy, president & CEO of Realty Income, “During our 54-year operating history, Realty Income has consistently paid stockholders a monthly dividend that increases over time. This dividend declaration represents the 636th consecutive monthly dividend declared by Realty Income since our founding.”
Solid dividend payouts are the biggest enticements for real estate investment trust (REIT) investors, and Realty Income has remained committed to that. This retail REIT enjoys the trademark of the phrase “The Monthly Dividend Company”. It is also part of one of the 64 companies in the elite S&P 500 Dividend Aristocrats® Index, which is designed to measure the performance of the S&P 500 companies that have increased dividends every year for the last 25 years.
Realty Income derives most of its annualized retail contractual rental revenues from tenants with a service, non-discretionary and/or low-price-point component to their business. Also, it has a diversified portfolio with respect to tenant, industry, geography and property type. These factors assure stable revenue generation for the company.
Moreover, the company maintains a healthy balance sheet position and exited the first quarter of 2023 with $3.1 billion of liquidity and a net debt to annualized pro-forma adjusted EBITDAre of 5.4X. It also enjoys credit ratings of A- (Stable) and A3 (Stable) from Standard & Poor’s and Moody’s, respectively, enabling it to procure debt financing at attractive costs.
With a well-laddered debt-maturity schedule and ample financial flexibility, the company remains well-poised to tide over any challenges and bank on growth scopes.
Hence, with healthy operating fundamentals, a lower debt-to-equity ratio compared with the industry and a solid financial position, we expect the latest dividend rate to be sustainable.
Shares of this Zacks Rank #3 (Hold) company have lost 3.6% in the year-to-date period against the industry’s growth of 2.5%.
The Zacks Consensus Estimate for Rexford Industrial’s current-year funds from operations (FFO) per share has moved marginally northward over the past two months to $2.19.
The Zacks Consensus Estimate for Stag Industrial’s ongoing year’s FFO per share has been raised marginally over the past two months to $2.25.
The Zacks Consensus Estimate for Innovative Industrial Properties’ 2023 FFO per share has moved 3.6% upward in the past two months to $8.66.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Realty Income (O) Cheers Investors With 121st Dividend Hike
Boosting shareholders’ wealth, Realty Income Corporation (O - Free Report) recently announced an increase in its common monthly cash dividend to 25.55 cents per share from 25.50 cents paid out earlier. This marked its 121st common stock monthly dividend hike since its listing on the NYSE in 1994.
The increased dividend will be paid out on Jul 14 to shareholders on record as of Jul 3, 2023. The latest dividend rate marks an annualized amount of $3.066 per share compared with the previous rate of $3.06.
Post this dividend hike, O’s annual dividend yield now comes to 5.01% based on the company’s share price of $61.19 on Jun 13, 2023. Moreover, the company has increased its dividend 23 times in the last five years and has a five-year annualized dividend growth rate is 2.98%. Check Realty Income’s dividend history here.
Per Sumit Roy, president & CEO of Realty Income, “During our 54-year operating history, Realty Income has consistently paid stockholders a monthly dividend that increases over time. This dividend declaration represents the 636th consecutive monthly dividend declared by Realty Income since our founding.”
Solid dividend payouts are the biggest enticements for real estate investment trust (REIT) investors, and Realty Income has remained committed to that. This retail REIT enjoys the trademark of the phrase “The Monthly Dividend Company”. It is also part of one of the 64 companies in the elite S&P 500 Dividend Aristocrats® Index, which is designed to measure the performance of the S&P 500 companies that have increased dividends every year for the last 25 years.
Realty Income derives most of its annualized retail contractual rental revenues from tenants with a service, non-discretionary and/or low-price-point component to their business. Also, it has a diversified portfolio with respect to tenant, industry, geography and property type. These factors assure stable revenue generation for the company.
Moreover, the company maintains a healthy balance sheet position and exited the first quarter of 2023 with $3.1 billion of liquidity and a net debt to annualized pro-forma adjusted EBITDAre of 5.4X. It also enjoys credit ratings of A- (Stable) and A3 (Stable) from Standard & Poor’s and Moody’s, respectively, enabling it to procure debt financing at attractive costs.
With a well-laddered debt-maturity schedule and ample financial flexibility, the company remains well-poised to tide over any challenges and bank on growth scopes.
Hence, with healthy operating fundamentals, a lower debt-to-equity ratio compared with the industry and a solid financial position, we expect the latest dividend rate to be sustainable.
Shares of this Zacks Rank #3 (Hold) company have lost 3.6% in the year-to-date period against the industry’s growth of 2.5%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Rexford Industrial Realty (REXR - Free Report) , Stag Industrial (STAG - Free Report) and Innovative Industrial Properties (IIPR - Free Report) . Each of these companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Rexford Industrial’s current-year funds from operations (FFO) per share has moved marginally northward over the past two months to $2.19.
The Zacks Consensus Estimate for Stag Industrial’s ongoing year’s FFO per share has been raised marginally over the past two months to $2.25.
The Zacks Consensus Estimate for Innovative Industrial Properties’ 2023 FFO per share has moved 3.6% upward in the past two months to $8.66.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.