Realty Income Has Raised Its Dividend Through Every Market Crash Since 1997. Should Income Investors Still Buy It?
The real estate investment trust has paid monthly dividends since 1994.
Realty Income, an REIT, has consistently increased its dividend through every market crash since 1997 and continues to show strength in various interest rate environments. The company leases single-tenant, net-leased properties, which allow tenants to cover maintenance, insurance, and taxes, resulting in a steady revenue stream for Realty Income.
With an almost 99% occupancy rate, the company is well-protected against tenant revenue drops during market crashes. Despite the 10-year Treasury reaching a 24-year high, Realty Income has maintained profit growth and expanded its real estate portfolios. The company has a strong reputation as the "Monthly Dividend Company," as it has maintained and increased its payout since 1994, currently yielding around 5.9%.
Realty Income's valuation is also favorable, with a price-to-FFO (free cash flow) ratio of 13, indicating that the stock may be a bargain. This income investment is particularly appealing due to its real estate orientation, stable client base, and ability to pay and increase its generous dividend regardless of market behavior.
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