realty income stock dividend history | Why You Should Buy Realty Income Stock At Almost Any Price

Realty Income has thousands of properties owned. It has an excellent occupancy record for its properties and an unmatched streak of paying out consistent and growing dividends. realty income stock dividend. Spotlight Realty Income Corporation ticker symbol O They are in the real estate sector of the economy and have been increasing their dividends every year for 29 consecutive years. It is the best real estate company in the world.

Let’s take a look at the business and understand why. The origin story for Realty Income goes back to 1969 when company founders William and Joan Clarke acquired the Northridge California Taco Bell property directly from Taco Bell founder Glenn Bell.

realty income stock dividend

His goal and his vision were simple from the beginning. To create a platform that provides shareholders with monthly dividends that grow over time. His unique approach was to buy commercial real estate and sell each property to well-qualified companies with a strong financial profile in exchange for capital. Fast forward to 1994.

Where Realty Income began trading on the New York Stock Exchange. So what does the business look like today, they own over 11,700. Commercial property with a portfolio occupancy rate of 98.9 percent, 1100 different clients, and spread across 79 different industries.

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realty income stocks when they have properties in all 50 states. So Texas has a heavy concentration of properties in the United States at 11.1 percent. Check out this historical record for portfolio occupancy in the Kingdom nine percent six percent Illinois and Florida at five points two percent Ohio at 4.5 percent Georgia at 3.6. That’s what you call steady real estate income during the dot-com bubble. 97 percent never dropped below 96.8 during the housing crisis 96.6 percent I can’t find a better representation of stable income.

realty income stocks dividend matrix

Talk about important dividend metrics that we need to understand. Remember that dividend growth is one of the most important things. We talk about it when it comes to dividend stocks because it is the most effective way for us as investors to combat the effects of inflation.

The three, five and ten-year growth rates for realty income are three point seven percent, two point nine percent, three point three percent, and 5.3 percent. While the numbers barely offset the effects of long-term inflation, which typically runs between two and three percent. A per share price of 64.8 cents per share doesn’t do a great job of offsetting the amount of inflation we’re feeling right now.

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The dividend yield currently stands at 4.6 percent compared to the historical five-year average dividend yield of 4.43. This means Realty Income is actually trading at a five percent discount relative to its historical dividend yield. Even though you cannot increase it with option income. We can technically get a yield of 4.64 with real income. Remember dividend protection. When we talk about dividend protection. We are talking about the payout ratio specifically dividends paid divided by free cash flow as opposed to net income because dividends are paid with cash and not net income.

realty income stock dividend history | Why You Should Buy Realty Income Stock At Almost Any Price

Realty Income is a real estate investment trust. This is a special tax classification. Real estate investment trusts are able to bypass corporate taxation. As long as they fulfill certain requirements, the biggest one being that they must deliver at least 90 percent. A higher dividend yield means higher taxable income to shareholders each year. You’ll notice all the way through the 12 months from 2012 to 2022 that Realty Earnings Per Share is a very stable free cash flow and continues to grow year over year. Let’s take a look at historical price increases for Realty Income.

realty income historical price rise

Here’s what the overall price appreciation has to do with reality in the coming year. The company was back at 71.92. Start of the year and we’re down to 64. But it does track with the type of decline that we’ve seen across the market. If we look at the two-year history, we have had price increases. We were originally at 57.94 and we are. If we go back 10 years we can see back in December of 2012 we were at 39.71 cents a share and we’ve grown a lot since then

What you get with Realty Income is a consistent and growing dividend. You also get appreciation in per-share value. So is there any opportunity to sell covered calls in Realty Income? The answer is yes. The key question here is whether Realty Income deserves a place in your own portfolio.

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For me, the answer is yes. In most cases, it is a real estate company and it is difficult to get real estate exposure in your portfolio. Which has consistent and steady price appreciation along with rising dividends. The truth is that it is difficult to get income exposure in reality.

As a result, if we are going to keep realty income in our portfolio it is best done in a retirement account. Where you are not paying tax on an annual basis. It’s actually hard to come up with a scenario where realty income is one. It’s great for young investors to own bad stocks in their portfolios. This is great for older investors. A great way to get real estate exposure in your portfolio. Be sure to leave your two cents in the comments below. I value all of your feedback and I respond to each and every one.

realty income stock dividend history | Why You Should Buy Realty Income Stock At Almost Any Price

disclaimer

I am not a financial advisor. Always engage a Financial Adviser to advise you on financial decisions. Always do your research as the information and tips shared in these blogs are for educational purposes only. The Information and tips are therefore not investment advice. If you decide to invest without your own research, you do so at your own risk. No rights can be derived from the information discussed in this blog. investing involves risks, you can lose (part of) your investment.

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