Realty Income Corp (NYSE:O) is a publicly traded real estate investment trust which makes investments in commercial real estate. The REIT raised its monthly dividend by 4% to 21.05 cents/share. The monthly dividend company has raised dividends to its shareholders for 23 years in a row. Over the past decade, Realty Income Corp (NYSE:O) has raised its annual dividend at a rate of 4.70%/year. I like the slow and steady nature of this defensive business model, where you rent out commercial properties to a diverse list of tenants, under long-term leases with built in rent escalation clauses. Long-term readers do know that we require a decent valuation before entering a buy order. Currently, the stock is overvalued at 20.70 times forward FFO and yields 4.20%. I would consider Realty Income Corp (NYSE:O) attractively priced on dips below $51/share.
Linear Technology Corporation (NASDAQ:LLTC) designs, manufactures, and markets a line of analog integrated circuits worldwide. The company raised its quarterly dividend by 3.10% to 32 cents/share. This marked the 25th annual dividend increase for this dividend champion. Over the past decade, Linear Technology has raised its annual dividend at a rate of 7.90%/year.
Linear Technology Corporation (NASDAQ:LLTC) has steadily raised earnings per share from $1.39 in 2007 to an estimated $2.18 for FY 2017. Currently, the stock is overvalued at 28.60 times forward earnings and yields 2.10%. The company is expected to be acquired by Analog Devices, Inc. (NASDAQ:ADI), and the deal is expected to close by the end of 2017. As a result, it makes sense to look elsewhere.
Alliant Energy Corporation (NYSE:LNT) operates as a utility holding company that provides regulated electricity and natural gas services to residential, commercial, industrial, and wholesale customers in the Midwest region of the United States. It operates through three segments: Electric, Gas, and Other. This marked the 14th annual dividend increase for this dividend contender. Over the past decade, Alliant Energy Corporation (NYSE:LNT) has raised its annual dividend at a rate of 7.40%/year.
Over the past decade, Alliant Energy Corporation (NYSE:LNT) has managed to deliver an anemic growth earnings from $1.45/share in 2006 to $1.69 in 2015. The company is expected to earn $1.88/share in 2016. Currently, the stock is close to being overvalued at 20 times forward earnings and yields 3.30%. As a result of the high valuation, and the lack of consistent earnings growth, I would give the stock a pass at this time.
Full Disclosure: Long O