We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Realty Income Boosts Dividend: Can It Preserve Investor Appeal?
Read MoreHide Full Article
Key Takeaways
Realty Income raised its monthly dividend to 26.95 cents, payable on Oct. 15 to holders as of Oct. 1.
The REIT's resilience stems from a diversified portfolio and stable, non-discretionary tenants.
$5.1B in liquidity and strong credit ratings support dividend sustainability despite near-term risks.
Realty Income Corporation (O - Free Report) , branded as “The Monthly Dividend Company,” announced another dividend boost, raising its monthly payout to 26.95 cents per share from 26.90 cents. While modest, it represents the REIT’s 132nd increase since its 1994 NYSE debut. Payable on Oct. 15 to holders on record as of Oct. 1, the hike equates to an annualized dividend of $3.234, yielding 5.44% on the Sept. 9 closing price of $59.49.
Amid macroeconomic uncertainty, a choppy job market and rate cut hopes, Realty Income’s reliable dividend stream continues to attract income-focused investors. A member of the S&P 500 Dividend Aristocrats index, the REIT boasts 30 years of consecutive monthly dividend payments and 112 straight quarterly increases, underscoring its resilience.
Realty Income’s stability stems from its 15,606-property global portfolio and emphasis on non-discretionary, service-based tenants. About 90% of rent is insulated from downturns and e-commerce risks. Additionally, diversification into gaming, industrial and data centers strengthens resilience while expanding long-term growth opportunities.
Moreover, Realty Income’s financial health — highlighted by $5.1 billion in liquidity with manageable debt maturities through 2026, investment-grade credit ratings of A3 / Stable from Moody’s and A- / Stable from S&P Global and a fixed-charge coverage ratio of 4.5 — supports dividend sustainability.
Challenges persist for Realty Income. Though lower rates could be a tailwind, AFFO growth could stay subdued due to economic uncertainty and tighter acquisition spreads. The REIT also anticipates 75 basis points of rent loss in 2025, partly from tenant credit risks linked to earlier M&A-driven portfolio additions.
VICI and ADC Also Stand Tall Among Net Lease REITs
VICI Properties Inc. (VICI - Free Report) continues to shine in the triple net lease REIT space, announcing a 4% dividend hike to 45 cents per share, payable on Oct. 9 to holders on record as of Sept. 18, 2025. With 6.6% annual growth since 2018, VICI Properties surpasses many competitors in the triple-net REIT space. VICI Properties maintains a target payout of 75% of its AFFO, offering shareholders a stable and attractive income stream.
Agree Realty Corporation (ADC - Free Report) maintains a strong dividend tradition. It recently declared a monthly cash dividend of 25.60 cents per share, payable on Oct. 14 to shareholders on record as of Sept. 30, 2025. Agree Realty has delivered 161 consecutive dividends, highlighting its consistency. With a 10-year CAGR of around 6%, Agree Realty mirrors peers like VICI Properties.
O’s Price Performance, Valuation and Estimates
Shares of Realty Income have risen 11.4% year to date against the industry’s decline of 5.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, O trades at a forward 12-month price-to-FFO of 13.64, below the industry. It carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for O’s 2025 and 2026 funds from operations per share has been revised marginally downward over the past 60 days.
Image Source: Zacks Investment Research
At present, Realty Income carries a Zacks Rank #4 (Sell).
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Realty Income Boosts Dividend: Can It Preserve Investor Appeal?
Key Takeaways
Realty Income Corporation (O - Free Report) , branded as “The Monthly Dividend Company,” announced another dividend boost, raising its monthly payout to 26.95 cents per share from 26.90 cents. While modest, it represents the REIT’s 132nd increase since its 1994 NYSE debut. Payable on Oct. 15 to holders on record as of Oct. 1, the hike equates to an annualized dividend of $3.234, yielding 5.44% on the Sept. 9 closing price of $59.49.
Amid macroeconomic uncertainty, a choppy job market and rate cut hopes, Realty Income’s reliable dividend stream continues to attract income-focused investors. A member of the S&P 500 Dividend Aristocrats index, the REIT boasts 30 years of consecutive monthly dividend payments and 112 straight quarterly increases, underscoring its resilience.
Realty Income’s stability stems from its 15,606-property global portfolio and emphasis on non-discretionary, service-based tenants. About 90% of rent is insulated from downturns and e-commerce risks. Additionally, diversification into gaming, industrial and data centers strengthens resilience while expanding long-term growth opportunities.
Moreover, Realty Income’s financial health — highlighted by $5.1 billion in liquidity with manageable debt maturities through 2026, investment-grade credit ratings of A3 / Stable from Moody’s and A- / Stable from S&P Global and a fixed-charge coverage ratio of 4.5 — supports dividend sustainability.
Challenges persist for Realty Income. Though lower rates could be a tailwind, AFFO growth could stay subdued due to economic uncertainty and tighter acquisition spreads. The REIT also anticipates 75 basis points of rent loss in 2025, partly from tenant credit risks linked to earlier M&A-driven portfolio additions.
VICI and ADC Also Stand Tall Among Net Lease REITs
VICI Properties Inc. (VICI - Free Report) continues to shine in the triple net lease REIT space, announcing a 4% dividend hike to 45 cents per share, payable on Oct. 9 to holders on record as of Sept. 18, 2025. With 6.6% annual growth since 2018, VICI Properties surpasses many competitors in the triple-net REIT space. VICI Properties maintains a target payout of 75% of its AFFO, offering shareholders a stable and attractive income stream.
Agree Realty Corporation (ADC - Free Report) maintains a strong dividend tradition. It recently declared a monthly cash dividend of 25.60 cents per share, payable on Oct. 14 to shareholders on record as of Sept. 30, 2025. Agree Realty has delivered 161 consecutive dividends, highlighting its consistency. With a 10-year CAGR of around 6%, Agree Realty mirrors peers like VICI Properties.
O’s Price Performance, Valuation and Estimates
Shares of Realty Income have risen 11.4% year to date against the industry’s decline of 5.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, O trades at a forward 12-month price-to-FFO of 13.64, below the industry. It carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for O’s 2025 and 2026 funds from operations per share has been revised marginally downward over the past 60 days.
Image Source: Zacks Investment Research
At present, Realty Income carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.