Realty Income O has built an impressive reputation for rewarding shareholders with consistent dividend payments. As of Aug. 18, 2026, the company declared 674 consecutive monthly dividends and delivered 115 consecutive quarterly dividend increases. Its dividend has grown for more than 31 consecutive years. However, recent increases have been relatively small, indicating a focus on financial strength rather than rapid dividend growth.
A key reason for confidence in Realty Income is its growing AFFO. In the second quarter of 2026, AFFO reached $1.09 per share, up 3.8% year over year. During the first half of 2026, AFFO per share increased 5.2% to $2.22. Dividends represented 74.5% of AFFO per share in the second quarter, suggesting earnings are growing faster than dividends and providing a cushion for future payments.
The property portfolio also supports dividend durability. Realty Income had more than 15,500 properties, with a weighted-average remaining lease term of about 8.6 years. Occupancy was 98.8% at the end of June 2026, while the second-quarter rent recapture rate reached 102.7%, highlighting stable rental income and successful lease renewals.
Realty Income’s continued access to debt and equity markets gives Realty Income flexibility to fund acquisitions and expand AFFO. Its growing push into data centers also provides exposure to expanding digital infrastructure and another avenue for growth.
While dividend increases may remain measured, the company’s scale, financial discipline, acquisition strategy and data center expansion support a positive long-term outlook for dividend durability and growth.
Dividend Appeal of Other Net Lease REITs
VICI Properties VICI remains an attractive option for income-focused investors, supported by steady dividend growth and resilient cash flows. The company pays 45 cents per share quarterly, or $1.80 annually. In the second quarter of 2026, AFFO per share rose 4.6% year over year to 62 cents. VICI also raised its 2026 AFFO guidance to $2.45-$2.47 per share, reinforcing the outlook for continued dividend support.
Agree Realty ADC also offers a compelling income profile, supported by monthly dividends and solid payout coverage. The company pays 26.70 cents per share monthly, or $3.204 annually, representing a 4.3% year-over-year increase. Second quarter 2026 AFFO per share increased 7.4% to $1.14, while the dividend represented only about 70% of AFFO. ADC also raised full-year AFFO guidance to $4.57-$4.59 per share and investment guidance to $1.6-$1.8 billion.
Realty Income’s Price Performance, Valuation and Estimates
Shares of Realty Income have risen 0.9% over the past three months, outperforming the broader industry and the S&P 500 Index marginally.
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In terms of forward 12-month Price/Earnings (P/E), Realty Income is currently trading at 13.69X, which is at a discount to the industry average of 16.89X.
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Realty Income’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised marginally upward over the past three months. The consensus estimate calls for 4% growth year over year.
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Currently, Realty Income carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Realty Income Corporation (O): Free Stock Analysis Report
Agree Realty Corporation (ADC): Free Stock Analysis Report
VICI Properties Inc. (VICI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).