Realty Income (O) – A Reliable Dividend Giant at a Discount
Realty Income has built one of the strongest reputations in the REIT sector by doing exactly what long-term investors value most: delivering steady and growing dividend income. The company has raised its dividend for more than 30 straight years, with 131 increases since going public in 1994. This year alone, shareholders have already seen four raises, adding up to 3.7% growth over the last 12 months.
Right now, the stock is trading about 9% below its 52-week high, near $59 per share. That puts the yield at a healthy 5.5% and the valuation at under 14x adjusted funds from operations (FFO). For comparison, the average REIT in the S&P 500 trades closer to 18x. In other words, Realty Income is offering both income and value at current levels.
The company has had a strong 2025 so far, generating $2.11 per share in adjusted FFO through the first half. Occupancy has averaged 98.6%, same-store rent growth has outpaced guidance, and management has already locked in $2.5 billion of new investments—putting it ahead of pace on its $5 billion full-year target. Full-year FFO is now expected to come in between $4.24 and $4.28 per share, slightly above earlier guidance.
What makes Realty Income particularly compelling is its growth runway. It owns more than 15,600 properties valued at about $61 billion across nine countries, with 79.9% of rent coming from retail, 14.6% from industrial, 3.1% from gaming, and 2.4% from other sectors. Recent expansion into Europe has opened up an $8.5 trillion investment opportunity, with 76% of second-quarter investments coming from the region. Meanwhile, new U.S. verticals like casinos and data centers have added nearly $900 billion in addressable opportunities. Altogether, Realty Income sees a staggering $14 trillion market it can continue to tap into.
With a fortress balance sheet, diversified global portfolio, and growing private capital initiatives, Realty Income has the financial firepower to keep expanding. For income-focused investors, this is one of those rare names you can buy today and reasonably expect to hold forever, collecting a rising dividend along the way.
