3 Reasons to Buy Realty Income Stock Like There's No Tomorrow
Key Takeaways
Realty Income has an attractive dividend yield, a great dividend history, and an industry-leading business.
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Quick insights and key information
4 min read
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real estate
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July 27, 2025
05:14 AM
The Motley Fool
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Re suggests that Realty Income (O -0. 21%) is a bellwether net lease real estate investment trust (REIT)
In contrast, There are a large number of reasons for long-term dividend investors to the stock
Furthermore, Meanwhile, Here are three that might help you seal the deal if you are looking to buy it today
Realty Income is the net lease leader With a market cap of around $50 billion, Realty Income is roughly three to four times the size of its next closest net lease peers
If you are looking at this niche of the REIT sector, Realty Income has to be a company you consider
But size alone isn't the whole story
Nevertheless, Image source: Getty Images (something worth watching)
Additionally, Realty Income's portfolio of more than 15,600 perties is massive
Furthermore, And while the REIT is heavily focused on net lease retail perties, it also has exposure to industrial assets in the mix
And its portfolio is spread across both North America and Europe, too
Essentially, this is a very diversified
Additionally, The benefits of scale don't stop at diversification, either
Furthermore, Being so large gives Realty Income easy access to capital
Its investment-grade-rated balance sheet, meanwhile, means it can generally get good rates when it issues debt
An attractive cost of capital is the outcome, and that gives the REIT a leg up on the competition, given the current landscape
Additionally, Oh, and it is also big enough to act as an industry consolidator
Being big is a big benefit for Realty Income
Realty Income's dividend yield is attractive Just being a good isn't enough to make any stock a buy (remarkable data)
Furthermore, Conversely, It should also offer a compelling valuation
On that score, Realty Income's dividend yield is currently around 5, amid market uncertainty
The average REIT has a yield of 4. 1% and the S&P 500 index's (^GSPC 0, given current economic conditions. 40%) yield is a tiny 1, considering recent developments
And Realty Income's yield is also near the high end of its range over the past decade, in light of current trends
O Dividend Yield data by YCharts Using yield as a rough gauge of valuation, Realty Income seems attractive today
But there's more to the dividend story
On the other hand, The REIT has increased its dividend annually for three decades
Nevertheless, It has increased the payment quarterly for 110 quarters
And it is paid out monthly, in today's financial world
If you are looking to replace a paycheck, attractively priced Realty Income is the kind of stock you'll want to buy there's no tomorrow
Realty Income has one blem, of Every investment has some warts, and Realty Income is no different
Nevertheless, The biggest one here is ly to be slow growth
That's part and parcel to the net lease giant's massive scale
Additionally, Additionally, It just takes more to move the needle here than it would at a smaller competitor (something worth watching)
Additionally, Meanwhile, Slow and steady is ly to be the norm in the future, as it has been in the past
However, That said, Realty Income isn't simply sitting around and doing nothing
Management recognizes that its vast size has become a limiting factor on growth
So it is leaning into its scale to create new avenues for growth
For example, it has expanded its investment circle to include casinos, data centers, loans, and even investment management
Furthermore, Everything Realty Income touches bably won't turn to gold, but the fact that management is looking to use its size in new ways will actually make Realty Income's slow and steady growth even more reliable over time
Reliable is a good attribute when it comes to dividends
Don't sleep on Realty Income The entire REIT sector is out of favor right now thanks to the rise in interest rates, which generally makes it more expensive to run a REIT (which is quite significant)
This's an opportunity for long-term dividend investors to pick up a great REIT Realty Income while it is offering an attractive yield
Don't miss out because you are focusing on the short-term gyrations of interest rates and stock (quite telling)
Additionally, Realty Income is a giant and well-run net lease REIT that is highly ly to be as reliable a dividend stock in the future as it has been in the past, in this volatile climate.
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