Realty Income (O) Dividend Snapshot – The Monthly Dividend Company

  • 16.8% compound average annual return since 1994
  • .23 cent dividend per share per month! Approx $2.79/year dividend per share.

Who owns all these buildings?

Realty Income is a solid and strong equity real estate investment trust. It is famous for its strength of performance, strong portfolio and for the monthly dividend they pay per share. As an equity REIT, this means that they own, operate and lease the commercial real estate they own. And as a REIT, they return 90% of the profits and dividends back to shareholders each and every month.

Do you ever wonder who owns the actual building you are walking in when you patronize a Walmart, Walgreens, Taco Bell, AMC movie theater, Home Depot, gas station, etc. Did you play Monopoly as a kid and want to own as many luxury properties as possible? Guess what, as an adult we can now own a small slice of many great properties via Real Estate Investment Trusts such as Realty Income (Ticker: O).

A small fraction of your purchase at many stores goes to paying rent on that property. Many times it is not the company you are patronizing that owns the property. In many cases it could be Realty Income based in San Diego, California, who own over 5,100 properties with 249 commercial tenants operating in 47 industries. Talk about diversified. And one thing people always seem to need: real estate in some shape or form.

.23 a share each and every month spins off to shareholders. The shares trade at about $79/share.

Realty Income, stock symbol “O”, is a way to gain investment exposure to the real estate sector without the headache and hassle of becoming a landlord. Realty Income is known as “The Monthly Dividend Company” because they pride themselves on their monthly dividend since 1969 that has increased over time. To me, it kind of has that feeling of collecting rent each month off your property. But again, the great thing about this kind of investment is that there is zero hassle in terms of managing properties and tenants. It is a stock that is purchased and then one can either collect the dividends each month as income or have them reinvested.

A “Dividend Machine”

Realty Income is a great example of a dividend machine that just keeps on spinning off income to investors. O generates stable and predictable income. I think of O as a sleep well at night investment vehicle. Sure, it will have its ups and downs like all stocks and companies, but many analysts see this as a great long term dividend stock to own.

FFO

FFO stands for funds from operations and captures how much cash flow is coming from their operations. Realty Income had a FFO increase of 3.8% to .82 per share/quarter.

CEO Comments

“We completed another strong quarter, investing $519.5 million in high quality real estate at investment spreads well above our historical average,” said Sumit Roy, President and Chief Executive Officer. “Our domestic investment pipeline remains robust, as we reviewed $11.7 billion of acquisition opportunities during the quarter. Our portfolio continues to perform well, and we generated a rent recapture rate of 104.7% on properties re-leased during the quarter.” “Subsequent to quarter-end, we announced our company’s expansion into international investments through a £429.0 million sale-leaseback transaction with Sainsbury’s, a major UK supermarket chain, which represents a natural evolution of our company’s strategy. We expect to establish and grow our international platform, and we are well-positioned to utilize our portable cost of capital, size, and scale advantages to pursue additional opportunities in the UK and mainland Europe. Please keep in mind that this article is for informational purposes only and is not investment advice. For more information check out: https://www.realtyincome.com
  • The Money Vikings hold positions in Realty Income. This is not investment advice to anyone, seek the help of a fiduciary financial professional with specific investment questions.

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