With shares of Realty Income Corp. (NYSE:O) trading at around $43.16, is the company an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for the Stock’s Movement
There are so many places to begin with this story. However, instead of getting into too much detail, we’re going to keep it simple. If you’re long Realty Income, then you already know the specifics. This article will be more geared toward people who might want to investigate further.
Realty Income is arguably one of the top REITs in existence. This is a company that has increased its dividend 19 years in a row. After closing the merger with American Realty Capital Trust (NASDAQ:ARCT), Realty Income intends to increase its dividend by $0.35 per share. As you can see, the dividend is safe. Currently, Realty Income yields 4.50 percent. Dividends are paid monthly opposed to quarterly, which investors love. The company has become known as “The Monthly Dividend Company.”
Realty Income owns 2,800 properties, the majority of which are leased out for 15 to 20 years. Most leases are given to retail chain stores. The majority of the income earned from these leases is then paid out to shareholders.
Let’s take a look at some other important numbers.