Realty Income Corp. (NYSE:O)

Why does this stock have only two stars?

This REIT has a $2.2 billion portfolio. It acquires freestanding retail properties, through sale-leasebacks, and has a portfolio that includes Pier One, Circle K, National Tire, Pizza Hut, Midas and Friendly’s stores. These leases typically have 10-25 year terms with renewal options and, of course, they roll over at different times. The company’s holdings were diversified across 48 states and 103 separate retail chains in 2006. “O” says its primary goal is: “to provide dependable monthly income to shareholders,” and it has paid out dividends every month since 1969. The current dividend yield is 5.5%.

The P/E of 16.5 is exceptionally low for a REIT, many of which range from 25 to 60x earnings (e.g. SPG or MAC). Long-term debt is only 36% of total assets, and major holders include Deutsche Bank, Vanguard, and TIAA-CREF.

Last year, the share price appreciated 27% and with the dividend yield, the overall return was 32.5%. Why put money in high-risk companies when you can get these returns from high credit tenants?

DCF calculation = $29.00 per share assuming 10% EPS growth over the next three years, 3% reversionary growth and a 10% discount rate.

For other reviews see http://www.matissecapitalmanagement.com.

A great income play. You get to see a monthly reward (dividend) that is stable and increasing with a appreciating stock price as well. INvestors have wisened up to the fact that dividends are the real secret to investing long-term and building wealth.

Steady, bankable, monthly dividend. Will pull back a little, but over nxt 5 yrs will be a steady performer.

REITs will be overpriced until curent imbalances in real estate market have been eliminated over the course of the next few years.

They have raised dividens every month except for 2 that they have been public.

Loving the dividends its an REIT! Their investment properties are held by businesses who don't seem to be heading into tough times anytime soon

I continue to like the real estate investment trusts. They not only provide income (monthly in this case) but should be a good defensive play as we get closer to the top of the bull cycle for equities. This one has a history of raising dividends pretty regularly.

A company that focuses on the owner. Pays a monthly dividend and has a history of raising the dividend each year!

A very shareholder-friendly operation. . . I've been watching Realty Income for a while (actually found it on a lark, just randomly putting in single-letter stock symbols; Citigroup and AT&T are others), and am ready to put down some cash. Pays monthly, owns property leased to, among others, Taco Bell, Staples, and Jiffy Lube, and runs very efficiently. The website is designed to inform and educate investors, and the annual reports are entertaining as well as insightful. Dividends increase with clock-like frequency, and, as I said about Wash REIT, commercial real estate is not going to deflate the way residential will (I doubt seriously that Taco Bell will miss a rent payment). It's also relatively small, which means plenty of room to grow (with reinvested monthly dividends accelerating the process).

This stock is included in the Morningstar "Dividend Portfolio," which I use as my core stock group. I highly suggest anyone interested in dividend income take a look at this grouping of quality stocks. (It also pays its dividend every month!).

Realty Income is exactly that -- a great stock to have if you like small monthly dividends. However, I expect it to fall over the next six months as the housing sector takes a hit and drags a lot of the home improvement stores with it. Excellent company, though, so will jump back in if it fdrops to the 22-23 range..

Great management team

Doing the right things

Triple-Net-Lease corporate strategy is a remarkably safe cash cow for those who want a steady and generous dividend cash flow, sweetened by a probable continuation of stock price appreciation. This company's success will continue even with a recession and a general market decline.

Great REIT with solid properties. Excellent management on board.

look at a chart of the last 20 years or so

This is wonderful low risk income stock. I am not so sure how it will do vis a via the S&P 500 but I am sure it wil continue to grow its dividend at 3-5% a year, while paying a 1-1.5% above a T-bill as a dividend

Home away from home!!

Great monthly dividend