Is O stock a good buy now? We came across a bullish thesis on Realty Income Corporation on Phaetrix Investing’s Substack by Phaetrix. In this article, we will summarize the bulls’ thesis on O. Realty Income Corporation’s share was trading at $65.00 as of March 6th. O’s trailing and forward P/E were 55.56 and 39.22 respectively according to Yahoo Finance.
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Realty Income Corporation, an S&P 500 company, is real estate partner to the world’s leading companies. O is positioned as a steady income-generating REIT, offering a 5.36% cash yield at a share price near $60.43, close to its 52-week high of $61.95. The company owns long-leased properties where tenants often cover major expenses, creating a predictable cash flow profile. Its growth engine is mechanical: acquiring properties funded by debt and equity to slowly increase FFO per share.
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However, the current interest rate environment limits the ability to secure accretive deals, compressing per-share growth to an estimated 0–2% for 2026. While the dividend remains reliable, stock price upside is constrained as Realty Income trades like a rate-sensitive asset, reacting to shifts in long-term yields and funding costs. Tenant stress and deal economics are monitored closely, as any sustained deterioration could impact cash flow growth. At the present price, investors are effectively buying a “paid-to-wait” asset: they collect the dividend while the stock may remain flat or experience modest fluctuations due to rate and valuation pressures.
Income-focused investors should start with a partial position and add only if 2026 FFO per share estimates hold and the stock maintains support above the 200-day moving average of around $57.8. Realty Income’s long-term appeal lies in its consistent dividend, low volatility, and predictable operations, making it suitable for conservative portfolios. The thesis turns bullish if interest rates decline, funding costs ease, and per-share growth stabilizes, allowing the dividend to compound while the stock achieves moderate re-rating.
Previously, we covered a bullish thesis on Realty Income Corporation (NYSE:O) by Kroker Equity Research in January 2025, which highlighted the company’s diversified property portfolio, reliable dividend history, and disciplined growth strategy. O’s stock price has appreciated by approximately 21.7% since our coverage. Phaetrix shares a similar view but emphasizes rate sensitivity and limited near-term upside, framing O as a paid-to-wait income asset.
Realty Income Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held O at the end of the fourth quarter which was 27 in the previous quarter. While we acknowledge the risk and potential of O as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than O and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
