Realty Income Corporation

Dividend Yield: 4.10%

Realty Income Corporation (NYSE: O) shares currently have a dividend yield of 4.10%.

Realty Income Corporation engages in the acquisition and ownership of commercial retail real estate properties in the United States. The company leases its retail properties primarily to regional and national retail chain store operators. The company has a P/E ratio of 64.79.

The average volume for Realty Income Corporation has been 1,779,100 shares per day over the past 30 days. Realty Income Corporation has a market cap of $10.3 billion and is part of the real estate industry. Shares are up 29.8% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Realty Income Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • O's very impressive revenue growth greatly exceeded the industry average of 10.1%. Since the same quarter one year prior, revenues leaped by 52.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 82.9% when compared to the same quarter one year prior, rising from $39.26 million to $71.80 million.
  • Net operating cash flow has increased to $56.27 million or 11.81% when compared to the same quarter last year. In addition, REALTY INCOME CORP has also vastly surpassed the industry average cash flow growth rate of -63.29%.
  • The gross profit margin for REALTY INCOME CORP is rather high; currently it is at 50.40%. Regardless of O's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, O's net profit margin of 41.82% significantly outperformed against the industry.
  • Compared to its closing price of one year ago, O's share price has jumped by 30.09%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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