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3 Reasons to Buy Realty Income Stock Like There's No Tomorrow

Julian WestTuesday, Mar 4, 2025 6:22 am ET
1min read

Realty Income (O) is a leading Real Estate Investment Trust (REIT) that has consistently delivered strong performance and dividend growth. With a history of increasing dividends for 27 years, realty income offers an attractive investment opportunity for income-focused investors. Here are three compelling reasons to consider adding Realty Income stock to your portfolio:

1. Dividend Growth and Yield: Realty Income has a proven track record of increasing its dividends, with a 27-year history of annual increases. As of 2024, the company offers a yield of around 5.87% (2024 estimate), which is higher than the average yield of other REITs and the broader market. This makes Realty Income an appealing choice for income-oriented investors.
- *Quote*: "Yield 2024 * 5.87% Yield 2025 * 6.06%"

2. Inflation Protection: Realty Income's business model provides natural protection against inflation. The company's long-term leases with embedded rent escalators allow it to pass on inflationary pressures to its tenants, supporting dividend growth even during inflationary periods.
- *Quote*: "REITs provide natural protection against inflation. Real estate rents and values tend to increase when prices do, due in part to the fact that many leases are tied to inflation."

3. Diversified Portfolio and Resilience: Realty Income's diversified portfolio of properties and tenants provides resilience against economic downturns and inflationary pressures. The company's portfolio is diversified across various sectors, including retail, office, and industrial, with no single tenant accounting for more than 5% of annualized base rent. This diversification helps mitigate risk and provides exposure to multiple growth trends within the REIT sector.
- *Quote*: "Realty Income's portfolio is diversified across various property types, including retail, office, and industrial properties."



In conclusion, Realty Income's dividend growth, inflation protection, and diversified portfolio make it an attractive investment opportunity for income-focused investors. The company's strong track record, high yield, and resilience against economic downturns and inflationary pressures make it a compelling choice for investors seeking a reliable stream of income. As the saying goes, "Don't put off until tomorrow what you can do today." So, consider adding Realty Income stock to your portfolio today and enjoy the benefits of its consistent dividend growth and inflation protection.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.