Realty Income Declares 133rd Consecutive Dividend Increase

Realty Income Corporation, the real estate investment trust famously known as "The Monthly Dividend Company," has announced its 133rd dividend increase since its 1994 public listing. This latest enhancement, though modest, reinforces the firm's long-standing commitment to shareholder returns.

The company's operational strength was on display in Q3 2025, with revenue reaching $1.47 billion. This figure surpassed analyst estimates of $1.35 billion and represented a 10.5% year-over-year increase. Adjusted Funds From Operations (AFFO), a key REIT performance metric, came in at $1.08 per share, up from $1.05 per share in the prior-year period. The GAAP earnings per share result of $0.35 narrowly missed the consensus expectation of $0.36.

Strategically, Realty Income continues to diversify its substantial portfolio. A recent $800 million investment in properties at CityCenter Las Vegas in early December marked a significant expansion of its presence in the gaming sector. The company has subsequently revised its full-year 2025 investment volume upward to exceed $6 billion.

The Dividend Details

Shareholders of record as of December 31, 2025, will receive a new monthly cash dividend of $0.2700 per share on January 15, 2026. This is a slight increase from the previous rate of $0.2695. On an annualized basis, the payout equates to $3.24 per share.

"Realty Income's consistent performance and diversified portfolio allow us to continue paying monthly dividends that grow over time," stated CEO Sumit Roy. The company has now distributed 666 consecutive monthly dividends since its founding in 1969, solidifying its position among the S&P 500 Dividend Aristocrats. Its portfolio spans more than 15,500 properties across the United States, the United Kingdom, and seven additional European nations.

Should investors sell immediately? Or is it worth buying Realty Income?

Market Sentiment and Valuation

Wall Street maintains a generally cautious stance. The average analyst rating is "Hold," with a consensus price target near $62, suggesting a potential 8-9% upside from current trading levels.

Recent analyst actions include:
- Barclays raising its target to $64 in early December (Equal Weight rating)
- Wells Fargo increasing its target to $60 in late November (Equal Weight)
- Cantor Fitzgerald lowering its target to $60 in early November (Neutral)

Currently, three analysts recommend buying the shares, while the majority advise holding.

Outlook for Income Investors

With a dividend yield hovering between 5.6% and 5.7%, the stock remains attractive to income-focused investors. Institutional ownership stands at approximately 71%. Notably, Norway's central bank, Norges Bank, established a new position valued at $676.5 million during the second quarter.

The stock trades at a price-to-earnings ratio in the 52-54 range, reflecting the premium the market assigns to stable dividend-paying REITs. The company maintains a moderate debt-to-equity ratio of 0.72. Whether this minimal dividend hike signals a future trend of slower growth or simply mirrors a current phase of heavy investment will become clearer in subsequent quarterly reports.