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O Raises the Payout: Can the Monthly Dividend Still Win Investors?
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Key Takeaways
O raised its monthly dividend to 27.10 cents and has declared 672 straight monthly dividends.
Realty Income's Q1 2026 AFFO/share rose 6.6% to $1.13; payout was 71.7% of AFFO.
O invested $2.8B, formed a $1B Apollo-backed retail JV, and raised 2026 AFFO guidance to $4.41-$4.44.
Realty Income (O - Free Report) is giving income investors another small raise, and that still matters. The REIT recently lifted its monthly common dividend to 27.10 cents a share from 27.05 cents, payable July 15 to holders of record on June 30. This puts the new annualized payout at $3.252 per share, implying a dividend yield of roughly 5.2% based on the June 10 closing price of $62.11.
For a company built around monthly checks, the size of the increase is less important than the pattern. This is its 135th dividend increase since listing on the NYSE in 1994, and it has now declared 672 straight monthly dividends. This record remains the core of its investor pitch.
The latest quarter gives the payout some backing. In first-quarter 2026, adjusted funds from operations (AFFO) per share rose 6.6% to $1.13, while the dividend paid was 81 cents per share, or 71.7% of AFFO. Occupancy stayed high at 98.9%, and rent recapture on re-leased properties came in at 103.4%.
Growth is also getting a wider funding base. Realty Income invested $2.8 billion in the quarter, formed a $1 billion Apollo-backed retail joint venture and highlighted fresh private-capital channels with Apollo, GIC and its U.S. Core Plus fund. Management also raised 2026 AFFO guidance to $4.41-$4.44 a share.
The appeal is not risk-free. Higher rates still shape REIT valuations, and faster growth now depends partly on large deals, Europe, credit investments and outside capital. Still, Realty Income’s mix of scale, 15,500-plus properties and steady monthly income give investors a familiar reason to keep watching the stock through the next round of earnings and market swings.
Dividend Appeal of Other Net Lease REITs
VICI Properties (VICI - Free Report) still stands out as a reliable net lease REIT for income investors, with a quarterly dividend of 45 cents, or $1.80 annually. VICI Properties posted 4.5% AFFO per-share growth in first-quarter 2026 and lifted guidance. VICI Properties also boasts of full occupancy and straight years of dividend growth since its IPO in 2018.
Agree Realty (ADC - Free Report) also fits the income case, supported by monthly payouts and healthy dividend coverage. Agree Realty recently announced a 26.70-cent monthly dividend, equal to $3.204 yearly and 4.3% higher year over year. Agree Realty reported first-quarter dividends covered by 69% of AFFO, with 2,756 properties and 65% investment-grade exposure.
O’s Price Performance, Valuation and Estimates
Shares of Realty Income have gained 10.2% so far this year, underperforming the industry’s growth of 20%.
Image Source: Zacks Investment Research
From a valuation standpoint, O trades at a forward 12-month price-to-FFO of 13.79, below the industry but ahead of its one-year median of 13.53. It carries a Value Score of C.
Image Source: Zacks Investment Research
Over the past seven days, estimates for both 2026 and 2027 FFO per share have been revised slightly downward.
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.
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O Raises the Payout: Can the Monthly Dividend Still Win Investors?
Key Takeaways
Realty Income (O - Free Report) is giving income investors another small raise, and that still matters. The REIT recently lifted its monthly common dividend to 27.10 cents a share from 27.05 cents, payable July 15 to holders of record on June 30. This puts the new annualized payout at $3.252 per share, implying a dividend yield of roughly 5.2% based on the June 10 closing price of $62.11.
For a company built around monthly checks, the size of the increase is less important than the pattern. This is its 135th dividend increase since listing on the NYSE in 1994, and it has now declared 672 straight monthly dividends. This record remains the core of its investor pitch.
The latest quarter gives the payout some backing. In first-quarter 2026, adjusted funds from operations (AFFO) per share rose 6.6% to $1.13, while the dividend paid was 81 cents per share, or 71.7% of AFFO. Occupancy stayed high at 98.9%, and rent recapture on re-leased properties came in at 103.4%.
Growth is also getting a wider funding base. Realty Income invested $2.8 billion in the quarter, formed a $1 billion Apollo-backed retail joint venture and highlighted fresh private-capital channels with Apollo, GIC and its U.S. Core Plus fund. Management also raised 2026 AFFO guidance to $4.41-$4.44 a share.
The appeal is not risk-free. Higher rates still shape REIT valuations, and faster growth now depends partly on large deals, Europe, credit investments and outside capital. Still, Realty Income’s mix of scale, 15,500-plus properties and steady monthly income give investors a familiar reason to keep watching the stock through the next round of earnings and market swings.
Dividend Appeal of Other Net Lease REITs
VICI Properties (VICI - Free Report) still stands out as a reliable net lease REIT for income investors, with a quarterly dividend of 45 cents, or $1.80 annually. VICI Properties posted 4.5% AFFO per-share growth in first-quarter 2026 and lifted guidance. VICI Properties also boasts of full occupancy and straight years of dividend growth since its IPO in 2018.
Agree Realty (ADC - Free Report) also fits the income case, supported by monthly payouts and healthy dividend coverage. Agree Realty recently announced a 26.70-cent monthly dividend, equal to $3.204 yearly and 4.3% higher year over year. Agree Realty reported first-quarter dividends covered by 69% of AFFO, with 2,756 properties and 65% investment-grade exposure.
O’s Price Performance, Valuation and Estimates
Shares of Realty Income have gained 10.2% so far this year, underperforming the industry’s growth of 20%.
Image Source: Zacks Investment Research
From a valuation standpoint, O trades at a forward 12-month price-to-FFO of 13.79, below the industry but ahead of its one-year median of 13.53. It carries a Value Score of C.
Image Source: Zacks Investment Research
Over the past seven days, estimates for both 2026 and 2027 FFO per share have been revised slightly downward.
Image Source: Zacks Investment Research
At present, Realty Income carries a Zacks Rank #3 (Hold). 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.