Top 5 Real Estate Stocks to Buy Now

4. Realty Income Corporation (NYSE:O)

Number of Hedge Fund Holders: 22

Forward Dividend Yield as of August 6, 2022: 4.08%

Realty Income (NYSE:O) is one of the 65 companies in the elite S&P 500 Dividend Aristocrats® Index as they have been investing in people and places for more than 50 years. The company promises to deliver dependable monthly dividends that increase over time with a compound average annual total shareholder return of 15.3% and a Compound Annual Dividend Growth Rate (CAGR) of 4.4% since it was publicly listed in 1994. O is reported to be one of the top ten global REITS with 11,200 real estate properties under long-term net lease agreements with commercial tenants. As of today, it has a market capitalization of $39.03 billion.

This stock collaborates with famous retailers around the United States and the United Kingdom with a strategy to invest in clients with a non-discretionary, low price point, and/or service-oriented component to their business. The company’s top tenants are Walgreens Boots Alliance Inc. (NASDAQ:WBA), Dollar General Corp (NYSE:DG), and Dollar Tree Inc. (NASDAQ:DLTR). Realty diversifies its portfolio by leasing 83.6% of its customers in the retail business, 14.4% in the industrial business, and 2.0% in others. Grocery stores (10.4%), convenience stores (9.1%), and dollar stores generate the majority of revenue (7.4%). 

The reported 1Q2022 FFO is $0.98 beating a consensus of $0.97. The company’s total revenue for the quarter was also impressive, coming in at $807.3 million versus a consensus estimate of $765.88 million. The company is expecting to reach the 2022 AFFO consensus of $3.94 with a range of $3.84-$3.97 AFFO. 

The board of directors declared a dividend of $0.2475 per share for July 2022 which is the 116th dividend increase since its listing on the NYSE in 1994. This is a 0.2% increase from the last dividend of $0.2470 per share. Realty currently has 22 hedge fund holders based on Insider Monkey’s latest report and a dividend yield of 4.08%.

Realty Income (NYSE:O) downgraded to Peer Perform rating Wolfe Research with a target price of $73. Though the stock was given an Outperform rating last March, financial analysts do not see Realty increase its valuation for the past couple of months, making it the 8th best real estate stock to buy now.