LONDON, UK / ACCESSWIRE / September 28, 2017 / Pro-Trader Daily takes a closer look at Realty Income Corp. (NYSE: O) as the Company's stock will begin trading ex-dividend on September 29, 2017. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on September 28, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:
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On September 12, 2017, Realty Income announced its Board of Directors has declared an increase in the company's common stock monthly cash dividend to $0.212 per share from $0.2115 per share. The dividend is payable on October 13, 2017, to shareholders of record as of October 02, 2017. The ex-dividend date for October's dividend is September 29, 2017. The new monthly dividend represents an annualized dividend amount of $2.544 per share compared to the current annualized dividend amount of $2.538 per share.
Realty Income's indicated dividend represents a yield of 4.39%, which is substantially above the average dividend yield of 3.17% for the financial sector. This is the 93rd dividend increase since Realty Income's listing on the NYSE in 1994.
Realty Income has a dividend payout ratio of 84.8%, which indicates that the Company distributes approximately $0.85 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Realty Income is forecasted to report earnings of $1.24 for the next year compared to the Company's annualized dividend of $2.54. Realty Income is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.
Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the Companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization to earnings and subtracting any gains on sales which provides a better picture of any company's profitability and capacity to pay and to sustain dividends. For instance, Realty Income's net income per share for the quarter ended June 30, 2017, was $0.30 compared to $0.27 for the same quarter in 2016. The Company's FFO per share for the quarter ended June 30, 2017, increased 7.1% to $0.75 compared to $0.70 for the same quarter in 2016. The FFO indicates that the Company should be able to comfortably cover its dividend payout.
Realty Income's cash and cash equivalents were $10.95 million at June 30, 2017, compared to $9.42 million at December 31, 2016. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain its dividend distribution for a long period.
Recent Development for Realty Income
On September 25, 2017, Realty Income announced that it will release its operating results for the quarter ended September 30, 2017, after the market closes on October 25, 2017. The Company will host its conference call on October 26, 2017, at 11:30 a.m. PT to discuss the operating results.
About Realty Income
Realty Income, The Monthly Dividend Company®, is an S&P 500 Company dedicated to providing shareholders with dependable monthly income. The Company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 5,000 real estate properties owned under long-term lease agreements with regional and national commercial tenants. To date, the Company has declared 567 consecutive common stock monthly dividends throughout its 48-year operating history and increased the dividend 93 times since Realty Income's public listing in 1994. The Company has in-house acquisition, portfolio management, asset management, credit research, real estate research, legal, finance and accounting, information technology, and capital markets capabilities.
On Wednesday, September 27, 2017, the stock closed the trading session at $57.31, falling 1.77% from its previous closing price of $58.34. A total volume of 1.57 million shares have exchanged hands, which was higher than the 3-month average volume of 1.52 million shares. Realty Income's stock price advanced 0.17% in the last one month and 0.88% in the past three months. The stock is trading at a PE ratio of 48.94 and has a dividend yield of 4.43%. The stock currently has a market cap of $15.80 billion.
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