Realty Income Corporation

Dividend Yield: 5.00%

Realty Income Corporation (NYSE: O) shares currently have a dividend yield of 5.00%.

Realty Income Corporation is a publicly traded real estate investment trust. It invests in the real estate markets of the United States. The firm makes investments in commercial real estate. Realty Income Corporation was founded in 1969 and is based in Escondido, California. The company has a P/E ratio of 53.48.

The average volume for Realty Income Corporation has been 2,127,300 shares per day over the past 30 days. Realty Income Corporation has a market cap of $8.5 billion and is part of the real estate industry. Shares are up 7.4% year to date as of the close of trading on Wednesday.

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 increase in stock price during the past year. 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 12.3%. 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. The firm also exceeded the industry average cash flow growth rate of -14.81%.
  • The gross profit margin for REALTY INCOME CORP is rather high; currently it is at 50.38%. 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.
  • REALTY INCOME CORP's earnings per share declined by 27.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, REALTY INCOME CORP reported lower earnings of $0.75 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($1.43 versus $0.75).

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