Can Realty Income Hold On to Its Dividend Strength & Global Growth?

Realty Income O, the “Monthly Dividend Company,” continues to captivate income-focused investors with a 5.47% yield and a reputation for dependable payouts. Its second-quarter 2025 results reinforce the REIT’s consistency, supported by a diversified portfolio spanning retail, industrial and international properties.The company’s track record is impressive: more than 30 years of consecutive dividend growth, 112 straight quarterly increases and 663 monthly distributions to date. This retail REIT has witnessed compound annual dividend growth rate of around 4.2% since 1994. Such consistency offers stability to investors, especially during market volatility, and underscores Realty Income’s commitment to sustainable dividends. Check Realty Income’s dividend history here.Durable cash flows stem from its net lease model, with tenants covering most property expenses. The 15,600+ properties across the United States, the U.K. and Europe are leased to 1,630 clients in 91 industries, with 73% of rents coming from non-discretionary or service-oriented tenants. Occupancy at 98.6% and rent recapture rates above 100% highlight strong tenant demand.Realty Income’s disciplined capital allocation supports dividend durability. By recycling assets, targeting higher-yielding opportunities and maintaining $5.1 billion in liquidity with A3/A- credit ratings, the REIT strengthens cash generation and financial flexibility. Its second-quarter 2025 deployments of $1.2 billion at a 7.2% yield, with a 15.2-year average lease term — 76% in Europe — drive incremental growth. With strong visibility to its pipeline, the company raised 2025 investment guidance to $5 billion, reinforcing its ability to sustain and gradually expand dividends, along with portfolio expansion.Dividend Strength Among Comparable Net Lease REITsVICI Properties VICI stands out in the triple-net lease REIT sector with 6.6% annual dividend growth since 2018, outperforming peers like Agree Realty and Realty Income. Its yield is supported by premium gaming and hospitality assets, and a 75% AFFO payout target provides a stable income stream. A strong balance sheet and diversified portfolio underpin VICI Properties’ long-term dividend sustainability.Agree Realty Corporation ADC mirrors this consistency, with 161 consecutive dividends and a 10-year CAGR of ~6%. Its 75% AFFO payout ratio reinforces reliable income, positioning Agree Realty alongside VICI Properties and other top net lease REITs in dividend stability.O’s Price Performance, Valuation and EstimatesShares of Realty Income have risen 10.6% year to date against the industry’s decline of 5%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, O trades at a forward 12-month price-to-FFO of 13.53, below the industry. It carries a Value Score of D.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for O’s 2025 and 2026 funds from operations per share has been revised marginally downward over the past 60 days.Image Source: Zacks Investment ResearchAt present, Realty Income carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Realty Income Corporation (O): Free Stock Analysis Report Agree Realty Corporation (ADC): Free Stock Analysis Report VICI Properties Inc. (VICI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks