Shares of Realty Income (NYSE: O) have seen a significant decline of around 33% from their pre-pandemic highs in early 2020. Despite this drop, the fundamentals of the business remain strong, making it an attractive option for investors looking for a reliable dividend stock with a historically attractive 5.7% yield.
Realty Income is a real estate investment trust (REIT) that specializes in net lease properties, with tenants responsible for most property-level expenses. With a massive portfolio of 15,450 properties, Realty Income is the industry leader in publicly traded net lease REITs. The company has a proven track record of reliability, having increased its dividend annually for 29 consecutive years.
The recent decline in stock price has pushed the yield up to its highest levels in a decade, making Realty Income a relatively cheap investment opportunity. While the drop in stock price can be attributed to broader market conditions, the company’s size and conservative approach provide important advantages over smaller peers.
Investors should consider Realty Income for its stability and industry-leading position. While market conditions may remain challenging until interest rates stabilize, now may be a good time to consider investing in this reliable net lease REIT. Acting sooner rather than later could ensure that investors do not miss out on the opportunity to own a piece of this industry giant.