Realty Income Corporation (O) spotlight

realty-income-logo1 Realty Income Corporation (O) spotlight

Realty Income Corporation  spotlight

Realty income corporation operates in real estate business by owning commercial property and making income from rent.

Historical return

PerformancevsStockIndicesMountain-q22016 Realty Income Corporation (O) spotlight
Historical total return(Realty Income website)
DividendIncreases-72616 Realty Income Corporation (O) spotlight
Dividend history (Realty Income website)

The company one of the best records in historical performance. Dividend growth and total investor return have been excellent. Sound business model is the basis of the performance.Real estate is rented to cheap price point organizations, for example, dollar stores, wholesale clubs, and snappy administration eateries. Not just improve bargains than can be discovered on the web, however they really have a tendency to improve in economic down turn. For example, drug stores, markets, and car service garages make core of the portfolio.


Here are some key figures for the Realty income.

key_figures Realty Income Corporation (O) spotlight

As the figure shows, Realty Income is not priced as “value” stock. This is pure dividend growth stock. If there would not be much growth, P/B should be close to 1.0

Price up 35% year to date. Seem some what pricey but this is top race horse among real estate companies and down side risk is limited in long run. It would make sense that stock is more sensitive to market turbulence due to price rise and good entry points might present them selves in coming months if we get market fluctuations.

Outlook and positions held

The company reported its second-quarter profit on Wednesday, July 27, and as we’ve developed to expect, the organization had another strong quarter. Income marginally beat desires and FFO somewhat missed, yet there were no significant bad things to be reported. The report was only the most recent section in a long history of generally safe development and brilliant shareholder returns.

Here is analyst estimate accuracy for the stock

estimates-1 Realty Income Corporation (O) spotlight

Yahoo finance

O is making a magnificent showing with regards to of exploiting the low-intrigue environment to gain appealing properties at greatly positive overall revenues. This really looks like one of those stocks you should never sell. I have average price now at $43.8. I am building REIT part now more but focus is now on diversification and repurchase of O has to wait. But if there is a opportunity for good deal, I will take it

Keep on investing!

Sources: Realty Income website,,yahoo finance


Leave a Reply