Last month, San Diego-based Realty Income Corp. (NYSE: O) announced that its board of directors had declared the 625th consecutive common stock monthly dividend in the company’s history. The dividend, $0.2475 per share, represents an annualized dividend of $2.97 per share for Realty Income’s famously loyal shareholders.
The company, a member of the S&P 500, also belongs to an even more select club known as the S&P 500 ‘Dividend Aristocrats’ because of its consistent record of dividend payouts.
Since debuting on the NYSE in 1994, O shares have posted an impressive 15.3% total compound annual return – including dividends – earning Realty Income the nickname ‘The Monthly Dividend Company.’
“We invest in people and places to deliver dependable monthly dividends that increase over time,” said a statement from the company issued along with the announcement of its 625th straight dividend.
Financial Blogger
TipRanks
The company’s rock-solid track record has attracted fans across Wall Street. Samuel Smith, a financial blogger for TipRanks, is one of a growing number of analysts who are bullish on O shares.
“Realty Income’s strong recent performance momentum, overwhelming analyst bullishness, compelling competitive advantages and attractive dividend yield plus growth profile make it currently considerably appealing,” Smith said.
“In a world filled with uncertainty, O stock continues to stand out as a source of reliability and stability for investors looking for a steady income stream,” Smith added.
In 2022’s volatile stock market – buffeted by rising inflation – an increasing number of investors have embraced dividend-paying stocks, especially companies that while still growing, have a stable track record of paying consistent dividends in both bull and bear markets.
With many big-name Wall Street stocks down more than 50% so far in 2022, Realty Income’s stock is trading around $75 a share, just below its 52-week high. For the company, the numbers speak for themselves: In 2021, Realty Income notched revenue of $2.08 billion, a 26.31% increase just from 2020. And O is up nearly 5% so far in 2022.
CEO
Realty Income
“We are pleased with the continued momentum across all facets of our business,” Realty Income CEO Sumit Roy said earlier this year. Roy, who is also company president and a board director, is a veteran investment banker with an MBA in finance and economics from the University of Chicago Booth School of Business.
“Our business is, by design, well-positioned to excel amidst a variety of macroeconomic climates,” Roy said. “During the [first quarter of 2022], we invested approximately $1.6 billion in high-quality real estate and are encouraged by a healthy pipeline of opportunities globally.”
VEREIT Merger Closed
Realty Income, founded by William E. Clark, Jr. and Evelyn Joan Clark in 1969, is structured as a REIT (real estate investment trust), with monthly dividends supported by the cash flow from over 11,200 real estate properties owned under long-term net lease agreements with commercial clients around the globe.
To date, the company has increased the dividend on its stock 116 times since its initial public listing.
In late 2021, Realty Income completed a merger with Phoenix-based real estate investment trust VEREIT (NYSE: VER). The combined company began trading Nov. 1, 2021 on the NYSE under the ticker symbol “O.”
As part of the merger agreement, two VEREIT directors, Priscilla Almodovar and Mary Hogan Preusse, were appointed to Realty Income’s 11-member board of directors.
“With the closing of the VEREIT merger,” Roy said, “we believe our size, scale and diversification will further enhance many of our competitive advantages, accelerate our investment activities and enhance shareholder value for years to come.”
Realty Income
FOUNDED: 1969
CEO: Sumit Roy
EMPLOYEES: 385
REVENUE: $2.08 billion (2021)
STOCK: O (NYSE)
BUSINESS: Real estate investment trust
WEBSITE: realtyincome.com
SOCIAL IMPACT: A statement on its website says the company is committed to promoting sustainable practices and “aspires to be a sustainability leader in the net lease REIT sector.”
NOTABLE: William (Bill) and Joan Clark founded Realty Income after buying a Northridge, California, Taco Bell property directly from Taco Bell founder Glen Bell in 1969.
