Realty Income Corporation (O) AI Stock Analysis

Realty Income, known as The Monthly Dividend Company, operates as a prominent Real Estate Investment Trust (REIT) listed on the S&P 500. It focuses on delivering reliable monthly income to its stockholders through a portfolio of over 6,500 commercial properties leased out under long-term agreements. Established in 1969, the company has declared 608 consecutive monthly dividends on its common stock. Since its 1994 initial public offering on the New York Stock Exchange under the ticker symbol O, Realty Income has increased its dividend 109 times, earning recognition as a member of the S&P 500 Dividend Aristocrats index.

Realty Income expanded annual revenue from $2.08B in FY2021 to $5.75B in FY2025, delivering a 5-year revenue compound annual growth rate of 28.4%. Annual net income grew from $359.5M in FY2021 to $1.06B in FY2025, with net margin moving from 17.3% to 18.4%. Operating margin contracted from 44.0% in FY2024 to 28.3% in FY2025. In the latest quarter ended June 30, 2026, revenue increased 9.6% year-over-year, and quarterly earnings grew 69.2%. Trailing twelve month revenue reached $6.07B with a profit margin of 20.9% and diluted earnings per share of $1.38.

As of June 30, 2026, Realty Income held $552.6M in cash and short-term investments alongside $2.76B in total debt, bringing net debt to $2.21B. Total assets stood at $76.44B against shareholders' equity of $39.55B, supporting a debt-to-equity ratio of 0.07 and a current ratio of 1.66. During FY2025, the company generated $3.99B in free cash flow, funded capital expenditures of $131.8M, paid $2.92B in dividends, and raised $2.36B through share issuance.

At $56.08, Realty Income trades at a trailing P/E of 40.6x and a forward P/E of 33.7x, both above the median of its S&P 500 Real Estate peers of 30.3x and 29.2x, respectively. Its price-to-sales ratio of 8.7x also stands higher than the peer median of 7.0x, though its EV to EBITDA multiple of 16.3x is below the peer median of 17.6x. Over the past year, the stock returned -0.2%, lagging the 16.8% return of the S&P 500 benchmark.

Realty Income pays a forward annual dividend of $3.26 per share on a monthly schedule, translating to a dividend yield of 5.81%. The company has paid dividends for 33 consecutive years, with a 5-year annualized dividend growth rate of 4.5%. Its payout ratio stands at 51.2%, and the last ex-dividend date was October 30, 2026.

Wall Street coverage includes 5 Strong Buy, 2 Buy, 17 Hold, 1 Sell, and 0 Strong Sell ratings. The mean price target of $65.63 sits 17.0% above the last close of $56.08. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $1.51 and revenue of $5.78B. The company recorded 0 EPS beats over the last 4 quarters, and its next earnings date is November 2, 2026.

This page is an AI-written research summary of Realty Income Corporation (O). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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