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Realty Income Corporation
🇺🇸 O · NYSE/NASDAQ · US7561091049
Real Estate
USD 62.83 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
50.9
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 62.83 ÷ 1.23 = 50.9
TTM period through: 2026-03-31
Forward P/E (estimated): 38.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 52.3
Net Debt/EBITDA (TTM)
7.1x
Latest quarter: 23.5x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 23.5x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
2.8%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
17.8x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
5.17%
TTM: 5.23%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 5.17%
Trailing Yield (TTM, last 12 months): 5.23%
Payout Ratio (Fwd)
263.2%
TTM: 264.8%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 263.2%
Payout (TTM): 264.8%
Cash Flow Payout (TTM): 72.7%
FCF Coverage (TTM): 1.37x
Growth Streak
1 yrs
Consec. increases
Div. Growth (5Y)
4.5%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Monthly | — | 30 Jun 2027 | — | USD | 0.271 |
| Forecast* | Monthly | — | 30 Apr 2027 | — | USD | 0.271 |
| Forecast* | Monthly | — | 27 Feb 2027 | — | USD | 0.27 |
| Forecast* | Monthly | — | 31 Dec 2026 | — | USD | 0.27 |
| Forecast* | Monthly | — | 31 Oct 2026 | — | USD | 0.27 |
| Forecast* | Monthly | — | 02 Sep 2026 | — | USD | 0.269 |
| Declared | Monthly | 09 Jun 2026 | 30 Jun 2026 | 15 Jul 2026 | USD | 0.271 |
| Paid | Monthly | 14 May 2026 | 29 May 2026 | 15 Jun 2026 | USD | 0.271 |
| Paid | Monthly | 14 Apr 2026 | 30 Apr 2026 | 15 May 2026 | USD | 0.271 |
| Paid | Monthly | 11 Mar 2026 | 31 Mar 2026 | 15 Apr 2026 | USD | 0.271 |
| Paid | Monthly | 17 Feb 2026 | 27 Feb 2026 | 13 Mar 2026 | USD | 0.27 |
| Paid | Monthly | 13 Jan 2026 | 30 Jan 2026 | 13 Feb 2026 | USD | 0.27 |
| Paid | Monthly | 09 Dec 2025 | 31 Dec 2025 | 15 Jan 2026 | USD | 0.27 |
| Paid | Monthly | 07 Nov 2025 | 28 Nov 2025 | 15 Dec 2025 | USD | 0.27 |
| Paid | Monthly | 14 Oct 2025 | 31 Oct 2025 | 14 Nov 2025 | USD | 0.27 |
| Paid | Monthly | 09 Sep 2025 | 01 Oct 2025 | 15 Oct 2025 | USD | 0.27 |
| Paid | Monthly | 14 Aug 2025 | 02 Sep 2025 | 15 Sep 2025 | USD | 0.269 |
| Paid | Monthly | 08 Jul 2025 | 01 Aug 2025 | 15 Aug 2025 | USD | 0.269 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Realty Income is a premium global net-lease REIT with an exceptional track record of reliable monthly dividends backed by essential commercial properties. Trading at $62.83, near the lower bound of our fair value estimate of $61-87 (P/FFO 14.4x), the stock represents an attractive entry point for dividend investors seeking stable, high-quality income. Worth considering for new positions, as the well-covered 5.2% yield provides reliable cash flow while waiting for temporary interest rate headwinds to subside.
Sector Context
Realty Income operates as a real estate investment trust (REIT), acquiring and managing freestanding commercial properties under long-term net lease agreements where tenants pay most operating expenses. In the REIT sector, traditional metrics like GAAP P/E and net income payout ratios are distorted by massive non-cash real estate depreciation; investors must instead focus on Price/Funds From Operations (P/FFO) and AFFO payout ratios, which accurately reflect the company's strong cash generation and legal requirement to distribute at least 90% of taxable income.
Temporary Opportunity Identified
Prolonged 'higher-for-longer' interest rate fears have pressured REIT valuations sector-wide, creating a discount on high-quality real estate assets despite strong underlying cash flows.
📊 Strategy Analysis
- • Trading at $62.83, the stock sits near the lower bound of our fair value estimate of $61-87 (P/FFO 14.4x), presenting a 12-38% upside to fair value.
- • Exceptional dividend safety with a 72.7% AFFO payout ratio supporting a 5.2% yield, backed by an elite 31-year streak of annual increases.
- • Massive scale and an investment-grade balance sheet provide a structural cost-of-capital advantage, allowing the company to consolidate the net-lease market while smaller peers are locked out.
- • Recent softer labor market data may ease 'higher-for-longer' interest rate fears, potentially serving as a catalyst for REIT valuation recovery.
⚠ What to Watch
- • Net Debt/EBITDA of 7.06x, while typical for investment-grade REITs, presents ongoing refinancing and interest expense considerations in a prolonged higher interest rate environment.
- • Tightening municipal decarbonization and ESG building mandates could introduce future structural capital expenditure liabilities, even within a triple-net lease framework.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.