onlyTrustedInfo.comonlyTrustedInfo.comonlyTrustedInfo.com
Notification
Font ResizerAa
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
Reading: Where Will Realty Income Stock Be in 5 Years?
Share
onlyTrustedInfo.comonlyTrustedInfo.com
Font ResizerAa
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
Search
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
  • Advertise
  • Advertise
© 2025 OnlyTrustedInfo.com . All Rights Reserved.
Finance

Where Will Realty Income Stock Be in 5 Years?

Last updated: July 6, 2025 6:41 am
Oliver James
Share
7 Min Read
Where Will Realty Income Stock Be in 5 Years?
SHARE

Key Points

  • Realty Income weathered some tough headwinds over the past five years.

  • But it continued to raise its dividend as its AFFO increased.

  • It might not consistently beat the market, but it’s still a great long-term buy.

Realty Income (NYSE: O), one of the world’s largest real estate investment trusts (REITs), is often considered a dependable income investment. It sports a forward yield of 5.6%, it pays its dividends monthly, and it’s raised its payout 131 times since its IPO in 1994.

Contents
Key PointsWhat happened to Realty Income over the past few years?What will happen to Realty Income over the next five years?Should you invest $1,000 in Realty Income right now?

As a REIT, Realty Income must distribute at least 90% of its pre-tax income to its investors as dividends to maintain a favorable tax rate. It leases its 15,621 properties to 1,565 different clients in over 89 industries in the U.S., U.K., and Europe, and its occupancy rate has never dipped below 96%. It’s also a capital-light triple net lease REIT — which means its tenants need to cover their own property taxes, insurance premiums, and maintenance fees.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Over the past five years, Realty Income’s stock price fell about 3%. Like many other REITs, it struggled in 2022 and 2023 as rising rates made it more expensive to purchase new properties, stirred up macro headwinds for its tenants, and drove some of its income investors toward risk-free CDs and T-bills. But if we include its reinvested dividends, it still delivered a total return of 25%. So will Realty Income’s stock rally over the next five years as interest rates decline, or does it face other unpredictable challenges?

What happened to Realty Income over the past few years?

Realty Income merged with VEREIT in 2021 and Spirit Realty in 2024. Those mergers more than doubled its number of properties from 2020 to 2024, but it still maintained a high occupancy rate as it grew its adjusted funds from operations (AFFO) and dividends per share.

Metric

2020

2021

2022

2023

2024

Total year-end properties

6,592

10,423

12,237

13,458

15,621

Year-end occupancy rate

97.9%

98.5%

99%

98.6%

98.7%

AFFO per share

$3.39

$3.59

$3.92

$4.00

$4.19

Dividends per share

$2.71

$2.91

$2.97

$3.08

$3.17

Data source: Realty Income.

Some of Realty’s top tenants — including Walgreens, 7-Eleven, and Dollar Tree — struggled with store closures over the past few years. However, stronger tenants like Dollar General, Walmart, and Home Depot consistently offset that pressure by opening new stores.

Realty Income still doesn’t generate more than 3.4% of its annualized rent from a single tenant, and it locks its tenants into long-term leases with an average term of nearly 10 years. That diversification and stickiness insulates it from economic downturns.

What will happen to Realty Income over the next five years?

Over the next five years, Realty Income will likely expand in Europe to curb its dependence on the U.S. market. Unlike its leases in the U.S., most of its European leases are tethered to the consumer price index, which allows it to raise its rent to keep pace with inflation. It will likely ramp up its investments in data centers to profit from the secular growth of the cloud and AI markets, and scoop up more properties at favorable prices in sale-leaseback deals (in which businesses sell their own real estate and lease it back to cut costs). It could also expand into more experiential markets — like gyms, resorts, and restaurants — to further diversify its portfolio.

Realty still generates most of its rental income from the retail sector, but those tenants should face fewer headwinds as inflation subsides and interest rates decline. Lower interest rates should also make CDs and T-bills less attractive and drive more investors back toward REITs.

From 2019 to 2024, Realty Income grew its AFFO at a CAGR of nearly 5%. If it continues to grow its AFFO at a CAGR of 5% from 2024 to 2030 — and still trades at 14 times its trailing AFFO — its stock price could rise 33% to about $77 within the next five years. It should continue to raise its dividends and stay within its historical yield of 4%-6%.

So while Realty Income might not consistently beat the S&P 500 — which has delivered an average annual return of 10% since its inception — it should remain a stable investment for investors who need a reliable stream of monthly income. That’s why I personally own shares of Realty Income, and why I think it’s a solid long-term play.

Should you invest $1,000 in Realty Income right now?

Before you buy stock in Realty Income, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $699,558!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $976,677!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 30, 2025

Leo Sun has positions in Realty Income. The Motley Fool has positions in and recommends Home Depot, Realty Income, and Walmart. The Motley Fool has a disclosure policy.

You Might Also Like

Newsmax Is Skyrocketing Today — Is the Stock a Buy Right Now?

Book Review: Restaurateur Keith McNally opens up in candid memoir ‘I Regret Almost Everything’

LA couple who earn $300K/year told Dave Ramsey they’re drowning in $119K of debt — where their income goes

Warren Buffett’s successor Greg Abel seen preserving Berkshire’s culture

Philips cuts profit, sees $300M impact from tariffs

Share This Article
Facebook X Copy Link Print
Share
Previous Article When my boyfriend and I blended our families and traditions, we realized we needed to form new traditions, too When my boyfriend and I blended our families and traditions, we realized we needed to form new traditions, too
Next Article ‘Train wreck’: Trump slams Musk after billionaire announces new political party ‘Train wreck’: Trump slams Musk after billionaire announces new political party

Latest News

Which Cryptocurrency Is More Likely to Be a Millionaire Maker? XRP vs. Shiba Inu
Which Cryptocurrency Is More Likely to Be a Millionaire Maker? XRP vs. Shiba Inu
Finance July 9, 2025
Should You Follow This 1 Shocking Cryptocurrency Recommendation From a Top Financial Advisor?
Should You Follow This 1 Shocking Cryptocurrency Recommendation From a Top Financial Advisor?
Finance July 9, 2025
Prediction: After Datadog’s S&P 500 Debut, These Stocks Could Be Next in Line
Prediction: After Datadog’s S&P 500 Debut, These Stocks Could Be Next in Line
Finance July 9, 2025
Only 35% of Americans Feel on Track For Retirement. Here Are 2 Stocks to Buy Now and Hold For Decades.
Only 35% of Americans Feel on Track For Retirement. Here Are 2 Stocks to Buy Now and Hold For Decades.
Finance July 9, 2025
//
  • About Us
  • Contact US
  • Privacy Policy
onlyTrustedInfo.comonlyTrustedInfo.com
© 2025 OnlyTrustedInfo.com . All Rights Reserved.