Realty Income: Attractive Dividend Aristocrat Offering Reliable Income

Realty Income Corporation, a Dividend Aristocrat with a market capitalization of $47.80 billion, offers investors a reliable income stream and attractive valuation, with a 5.62% dividend yield and a history of 124 consecutive dividend increases, amidst a solid financial performance and diverse portfolio of over 15,450 properties across the US and international markets. The company's shares have increased by 26.31% over the past year, despite a recent 11.38% decrease, with analysts maintaining a "Buy" consensus rating and a potential upside of 12.44% from the current price.

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Bijay Laxmi
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Realty Income: Attractive Dividend Aristocrat Offering Reliable Income

Realty Income: Attractive Dividend Aristocrat Offering Reliable Income

Realty Income Corporation stands out as one of the cheapest Dividend Aristocrats in the market, providing investors with a reliable income stream and an attractive valuation. With a market capitalization of $47.80 billion and 870.77 million shares outstanding, Realty Income has seen its shares increase by 26.31% over the past year.

Why this matters: The performance of Realty Income and other Dividend Aristocrats can have a significant impact on the overall stock market and investor confidence. As a reliable source of income, these companies play a crucial role in shaping investment strategies and portfolio decisions.

The company's valuation metrics are compelling, with a trailing PE ratio of 50.67 and a forward PE ratio of 34.27, indicating potential for future growth. Realty Income's PEG ratio stands at 4.72, while its return on equity (ROE) and return on invested capital (ROIC) are 2.30% and 2.39%, respectively. In the past 12 months, the company has paid $55.57 million in taxes.

Despite the stock price decreasing by 11.38% in the last 52 weeks, Realty Income's beta of 0.92 suggests that its price volatility is similar to the market average. The latest short interest stands at 13.25 million, representing 1.52% of outstanding shares sold short.

Realty Income's financial performance has been solid, with revenue of $4.40 billion and profits of $776.99 million in the last 12 months, translating to earnings per share of $1.08. The company has $680.16 million in cash and $25.34 billion in debt, resulting in a net cash position of -$24.66 billion or -$28.32 per share. Operating cash flow was $3.01 billion, and capital expenditures were -$6.79 billion, giving a free cash flow of -$3.79 billion.

One of the most attractive aspects of Realty Income is its generous dividend yield of 5.62%, with an annual dividend of $3.08 per share. The company has a long history of consistently paying shareholders for over 55 years, with an impressive track record of 124 consecutive dividend increases.

Analysts have a favorable view of Realty Income, with a consensus rating of "Buy" and an average price target of $61.73, representing a potential upside of 12.44% from the current price. "Realty Income Corporation, Franklin Resources, and Amcor PLC are three of the cheapest Dividend Aristocrats in the market, offering reliable income streams and attractive valuations, with dividend yields ranging from 4.82% to 5.17%," highlighting the company's appeal to income-seeking investors.

With approximately 15,450 properties serving over 1,500 clients in 89 industries throughout the US and several international markets, Realty Income has a diverse and stable portfolio. The company's last stock split was on November 15, 2021, with a forward split ratio of 1032:1000, and its latest earnings date was Monday, May 6, 2024, after market close.

Key Takeaways

  • Realty Income is a cheap Dividend Aristocrat with a 5.62% dividend yield.
  • Shares have increased 26.31% over the past year, with a market cap of $47.80 billion.
  • Valuation metrics indicate potential for future growth, with a forward PE ratio of 34.27.
  • The company has a solid financial performance, with revenue of $4.40 billion and profits of $776.99 million.
  • Analysts have a "Buy" consensus rating, with a 12.44% potential upside from the current price.