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Where Will Realty Income Stock Be in 5 Years?
Realty Income (NYSE: O) has a strong performance history over the long run, with cumulative returns since its 1994 IPO that have handily outpaced the S&P 500 (SNPINDEX: ^GSPC). However, over the past decade, the net lease real estate investment trust, or REIT, has significantly underperformed the broader market.Of course, some of this has been due to the surge in megacap tech stocks largely fueling the S&P 500's performance during that time. But even so, a 108% total return in a decade (about 7.6% annualized) is lower than long-term investors tend to hope for from their stock investments.Having said that, Realty Income hasn't underperformed due to anything being wrong with the business itself. Its properties are still generating predictable, growing income streams. Management is still finding ways to invest billions in capital per year into new investments. And the company's bottom line continues to grow, allowing management to keep increasing the dividend, with the current streak standing at 111 consecutive quarterly dividend raises.Continue reading
Realty Income (NYSE: O) has a strong performance history over the long run, with cumulative returns since its 1994 IPO that have handily outpaced the S&P 500 (SNPINDEX: ^GSPC). However, over the past decade, the net lease real estate investment trust, or REIT, has significantly underperformed the broader market.
Of course, some of this has been due to the surge in megacap tech stocks largely fueling the S&P 500's performance during that time. But even so, a 108% total return in a decade (about 7.6% annualized) is lower than long-term investors tend to hope for from their stock investments.
Having said that, Realty Income hasn't underperformed due to anything being wrong with the business itself. Its properties are still generating predictable, growing income streams. Management is still finding ways to invest billions in capital per year into new investments. And the company's bottom line continues to grow, allowing management to keep increasing the dividend, with the current streak standing at 111 consecutive quarterly dividend raises.
