Yahoo Finance Realty Income Corp's Dividend Analysis
An In-Depth Look at Upcoming Dividends and Historical Performance
Realty Income Corp (NYSE:O) recently announced a dividend of $0.26 per share, payable on June 14, 2024, with the ex-dividend date set for June 3, 2024. As investors anticipate this upcoming payment, it's crucial to delve into the company's dividend history, yield, and growth rates. This analysis uses comprehensive data from GuruFocus to evaluate the sustainability and performance of Realty Income Corp's dividends.
What Does Realty Income Corp Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Realty Income owns approximately 13,400 properties across 49 states and Puerto Rico, primarily consisting of freestanding, single-tenant, triple-net-leased retail properties. The company's portfolio also includes industrial, gaming, office, manufacturing, and distribution properties, which collectively generate about 17% of its revenue. This diverse property base supports a stable rental income, crucial for sustaining its dividend payments.
A Glimpse at Realty Income Corp's Dividend History
Since 1994, Realty Income Corp has maintained a consistent record of dividend payments, distributed monthly. Impressively, the company has increased its dividend annually since 1999, earning it the status of a dividend aristocrata title reserved for companies with at least 25 consecutive years of dividend increases. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down Realty Income Corp's Dividend Yield and Growth
Currently, Realty Income Corp boasts a 12-month trailing dividend yield of 5.79% and a forward dividend yield of 5.81%, indicating an expected increase in dividend payments over the next year. Over the past three years, the company's annual dividend growth rate has been 3.00%, with a consistent rate over the past five years and an increase to 3.70% over the past decade. The 5-year yield on cost stands at approximately 6.71% today.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio, sitting at 2.25 as of March 31, 2024, suggests that Realty Income Corp might be distributing a sustainable portion of its earnings as dividends. The company's profitability rank is 8 out of 10, indicating robust earnings relative to peers, and has consistently reported positive net income over the past decade.
Growth Metrics: The Future Outlook
Realty Income Corp's growth rank of 8 out of 10 suggests a promising growth trajectory. The company's revenue per share and a 3-year revenue growth rate of 7.30% per year outperform 63.36% of global competitors. Additionally, its 3-year EPS growth rate and 5-year EBITDA growth rate further solidify its capability to sustain dividends.
Conclusion: A Reliable Dividend Payer with Strong Growth Prospects
Realty Income Corp's consistent dividend increases, sustainable payout ratio, and strong profitability and growth metrics make it a compelling choice for dividend investors. Its diverse property portfolio and strategic acquisitions provide a solid foundation for future growth. For those looking to expand their investment in high-dividend yield stocks, consider using the High Dividend Yield Screener available to GuruFocus Premium users.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
