Realty Income said on July 11, 2023 that its board of directors declared a regular monthly dividend of $0.26 per share ($3.07 annualized). Previously, the company paid $0.26 per share.
Shares must be purchased before the ex-div date of July 31, 2023 to be eligible for the dividend. Shareholders of record on August 1, 2023 will receive payment on August 15, 2023.
At the current share price of $60.82/share, the dividend yield of the stock is 5.04%.
Looking back five years and taking a sample each week, the average dividend yield was 4.34%, the lowest 3.37% and the highest 6.45%. The standard deviation of returns is 0.49 (n=236).
The current dividend yield is 1.42 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is 2.30. The payout ratio tells us how much of a company’s income is paid out as dividends. A payout ratio of one (1.0) means that 100% of the company’s income is paid out as dividends. A payout ratio above one means the company is dipping into its savings to maintain its dividend, which is not a healthy situation. Companies with little growth prospects should pay most of their income in the form of dividends, which generally means a payout ratio between 0.5 and 1.0. Companies with good growth prospects should retain part of their profits in order to invest in these growth prospects, which translates into a payout ratio of zero to 0.5.
The company’s 3-year dividend growth rate is 0.09%, demonstrating that it has increased its dividend over time.
What is fund sentiment?
There are 1786 funds or institutions reporting positions in Realty Income. This is a decrease of 10 owner(s) or 0.56% in the last quarter. Average portfolio weight of all funds dedicated to O is 0.44%, an increase of 10.11%. The total number of shares held by institutions has increased over the past three months by 1.68% to 597,991,000 shares. 
O’s put/call ratio is 0.71, indicating a bullish outlook.
Analyst price forecast suggests 16.52% upside
As of July 6, 2023, the one-year average price target for property income was 70.87. The forecast ranges from a low of 65.65 to a high of $77.70. The average price target represents a 16.52% increase from its last published closing price of 60.82.
Check out our ranking of companies with the biggest upward price target.
The expected annual revenue for Realty Income is 3,703 million, an increase of 6.61%. Projected annual non-GAAP EPS is 1.41.
What are the other shareholders doing?
Cohen & Steers owns 43,447,000 shares representing 6.45% ownership of the company. In its previous filing, the company said it held 38,594,000 shares, representing a raise of 11.17%. The company increase its portfolio allocation in O of 9.99% over the last quarter.
VGSIX – Vanguard Real Estate Index Fund Investor Shares owns 27,562,000 shares representing 4.09% ownership of the company. In its previous filing, the company stated that it holds 27,540,000 shares, representing a raise by 0.08%. The company increase its portfolio allocation in O of 2.74% over the last quarter.
Bank Of America holds 25,146,000 shares representing 3.74% ownership of the company. In its previous filing, the company stated that it holds 23,050,000 shares, representing a raise of 8.34%. The company decreases its portfolio allocation in O of 1.79% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares owns 20,441,000 shares representing 3.04% ownership of the company. In its previous filing, the company stated that it holds 19,055,000 shares, representing a raise 6.78%. The company decreases its portfolio allocation in O of 1.12% over the last quarter.
VIMSX – Vanguard Mid-Cap Index Fund Investor Shares owns 15,427,000 shares representing 2.29% ownership of the company. In its previous filing, the company stated that it holds 14,583,000 shares, representing a raise of 5.47%. The company increase its portfolio allocation in O of 2.22% over the last quarter.
General information on property income
(This description is provided by the company.)
Realty Income, The Monthly Dividend Company®, is an S&P 500 company dedicated to providing shareholders with reliable monthly income. The company is structured as a REIT and its monthly dividends are supported by cash flow from more than 6,500 real estate properties held under long-term lease agreements with commercial tenants. To date, the company has declared 606 consecutive monthly common stock dividends in its 51 years of operation and has increased the dividend 109 times since Realty Income’s IPO in 1994 (NYSE:O). The company is a member of the S&P 500 Dividend Aristocrats® Index.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.