Realty Income's Dividend Growth Stays Durable: Should You Buy or Hold?

Verizon (VZ) and Realty Income (O) both yield around 5%, but differ in growth and balance sheet. VZ reported 27% YoY free cash flow growth, raised EPS guidance to 6-7%, and has lower leverage. O has 115 consecutive dividend increases, but slower growth and higher debt. VZ is preferred for growth, while O suits income-focused investors.

Realty Income (O) is a REIT with a 5.3% dividend yield, paying monthly and raising dividends for 135 times since 1994. It maintains high occupancy (98.6%) and rent increases (2.7% in Q2). The company expects AFFO per share of $4.44-$4.45, covering its dividend payouts.

Realty Income (O) offers a 5.27% dividend yield, higher than the 4.45% Treasury rate, and has raised its dividend for 114 consecutive quarters. CEO Sumit Roy deployed $2.8B in Q1 at a 7.1% cash yield, raising full-year investment guidance to $9.5B. Ten directors bought 3,214 shares each in May 2026, signaling insider confidence. The company reported Q2 2026 AFFO per share of $1.09, up 3.8% YoY, with portfolio occupancy at 98.8%. Fitch Ratings assigned Realty Income a 'A' rating in August 2026.

Five REITs are highlighted for retirement income, with four maintaining monthly dividends and high occupancy. Realty Income (O) reported Q2 AFFO growth and raised guidance. Agree Realty (ADC) increased dividends and occupancy. EPR Properties (EPR) saw strong AFFO growth and raised guidance. LTC Properties (LTC) is transitioning its model. STAG Industrial (STAG) shifted to quarterly payments.

Realty Income (O) amended its term loan agreements with Wells Fargo and Toronto Dominion to align with its recently closed Fifth Amended and Restated Credit Agreement. The amendments adjust terms for a $500M loan due August 2027 and a $1.35B multi-currency loan maturing January 2028. Details were filed with the SEC. GuruFocus estimates the stock's fair value near $60.99, with a GF Score of 86/100.

Realty Income (O) fell 0.9% to $62.60 on Friday, with its yield premium over 10-year Treasuries narrowing to 46 basis points. Analysts expect an 8.5% upside, though most ratings are Hold. The company reported stable Q2 AFFO growth and raised its 2026 outlook. Upcoming U.S. inflation and GDP data may impact yields and the stock's valuation.