Introduction

Buying Realty Income (O) Like There's No Tomorrow: 6 Reasons Why

Introduction

Realty Income (O), a net lease real estate investment trust (REIT), has underperformed the broader market in 2023. Despite this, analysts believe that Realty Income is an attractive investment opportunity. Here are six reasons why you should consider buying Realty Income stock:

1. High Dividend Yield

Realty Income offers a high dividend yield of around 4.8%, which is near its historical highs. The company has a long history of paying dividends and has increased its dividend for 100 consecutive quarters.

2. Diversified Tenant Base

Realty Income has a diversified tenant base with over 1,100 tenants across 51 industries. This diversification helps to reduce the company's risk of losing revenue from any one tenant.

3. Accretive Buyouts

Realty Income has a strong track record of making accretive acquisitions. The company acquires properties at a discount to their net asset value and then leases them out to tenants at higher rates.

4. Solid Balance Sheet

Realty Income has a strong balance sheet with low debt and high liquidity. This gives the company the financial flexibility to make acquisitions and weather economic downturns.

5. Strong Historical Performance

Realty Income has a strong track record of delivering shareholder value. The company's stock has outperformed the S&P 500 index over the past 10 years.

6. Low Valuation

Realty Income's stock is currently trading at a discount to its historical valuation. This provides investors with a favorable entry point.

Conclusion

Realty Income is a well-managed REIT with a solid track record of delivering shareholder value. The company offers a high dividend yield, a diversified tenant base, accretive acquisitions, a strong balance sheet, and low valuation. These factors make Realty Income an attractive investment opportunity for income-oriented investors.