Summary: Realty Income is one of the world’s largest public real estate investment trusts specializing in properties with net leases. Known for its monthly rather than quarterly payments, this high-dividend REIT is popular with many investors. This guide will show you how to buy Realty Income stock using a regulated online brokerage like eToro.
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About Realty Income
About
Based in San Diego, California, Realty Income owns over 13,000 assets, primarily under long-term net lease agreements with commercial clients. The company is among the top dividend stocks, increasing its dividend 122 times since its IPO in 1994. As of December 2023, it has a dividend yield of 5.42% and a compound annual dividend growth rate of 4.3%.
Realty Income’s market capitalization is $35.8 billion. It is a component of the S&P 500 index.
Additional investing
How to buy Realty Income stock: step-by-step
The general public can invest in Realty Income Corporation as it is publicly traded on the New York Stock Exchange since 1994. You can invest in Realty Income using an online brokerage in these five simple steps:
Step 1: Choose a broker
Before you invest in O, you need access to the stock market. The best intermediary for this is an online brokerage platform.
To securely buy Realty Income stock (O), we recommend the following:
- Commission-free stock and ETF trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- User-friendly platform.
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You might also want to consider investing in other high-dividend REITs such as:
- Annaly Capital Management (NYSE: NLY);
- Arbor Realty Trust (NYSE: ABR);
- Starwood Property Trust (NYSE: STWD);
- Omega Healthcare Investors (NYSE: OHI).
Step 2: Open and fund your account
Upon deciding on the brokerage, you need to register and verify your account. The investing service should dispatch the instructions to your email or phone within minutes.
Once you finish the verification, you should transfer some money to your account. You will use that to purchase REIT stocks like Realty Income through payment options such as a bank transfer, debit or credit card, and financial transaction services such as PayPal (PYPL).
Step 3: Decide how much you want to invest
Before you buy any stock, you need to see how much money you can dedicate to this investment. Knowing your budget’s limits is crucial, as overextending can lead to a financial disaster. To ensure the necessary degree of safety, make sure you have done the following:
- Paid off all high-interest debt, such as credit cards and personal loans;
- Created an emergency fund that covers at least three months of daily life expenses.
Remember
Step 4: Place your order and buy Realty Income stock
The next step is to place an order and buy O shares. Do the following steps:
- Step 1: Log in and find Realty Income’s ticker symbol O;
- Step 2: Specify the amount of money or the number of Realty Income shares you want to purchase;
- Step 3: Select the order type (market order or limit order) and place it;
- Step 4: Confirm the trade order.
Step 5: Monitor and manage your investment
While investing in REITs requires less regular maintenance than active stock speculation due to a passive income stream, you still have to monitor and manage your investment. Having the relevant information about stock performance and the company’s financial health is crucial to the overall success of your REIT portfolio.
Realty Income stock price today
Pros and cons of buying Realty Income stock (O)
Pros
- Reliable income stream: Realty Income has registered “The Monthly Dividend Company” trademark to highlight further the fact that it pays monthly dividends. Coupled with a long history of financial stability and success, it offers solid potential to passive income-oriented investors;
- Diversification: Realty Income owns a diverse retail and commercial property portfolio across different sectors and continents, which helps spread risk and reduce the impact of economic downturns on the overall portfolio;
- Passive investment: As a REIT, by law, Realty Income has to distribute at least 90% of its taxable income to shareholders in dividends. Therefore, shareholders do not have to own the properties themselves to benefit;
- Liquidity: Unlike actual property, which requires significant time and effort to buy or sell, REITs are traded on public exchanges quickly and easily.
- Major clients: Realty Income’s most significant tenants include Dollar General (3.8% of portfolio), Walgreens (3.8%), Dollar Tree (3.3%), 7-Eleven (3.2%), and EG Group (2.7%).
Cons
- Tenant-dependent: Realty Income’s performance depends on its tenants’ financial stability. While the company has managed to diversify tenant exposure through the vast number of assets, global economic downturns can still potentially lead to tenant bankruptcies or lease renegotiations;
- Interest rate sensitivity: The law mandates that Realty Income pays at least 90% of its taxable income to shareholders, leaving debt as one of the few available expansion options. Therefore, Realty Income’s financial performance is highly susceptible to shifts in interest rates;
- Regulatory risks: REITs are subject to various regulations and tax rules. Changes in tax laws or regulations can impact the attractiveness of Realty Income as an investment.
Common mistakes to avoid when buying Realty Income stock
Make sure to avoid these common investing mistakes:
- Lack of research: Research the Realty Income company and its REIT stock in detail, along with the market state of the property sector, before investing;
- Lack of strategy: Set your goals before you spend any money;
- Staking everything on one asset: Always diversify your portfolio;
- Falling prey to scams: Avoid illegal platforms and suspicious deals.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Realty Income stock
Where is Realty Income's stock listed?
Realty Income trades under the O ticker on the New York Stock Exchange.
How do I buy Realty Income stock?
Investors can invest in Realty Income using an online brokerage like eToro.
Does Realty Income pay dividends?
Yes, Realty Income has a long history of paying dividends, with a dividend yield of 5.42% as of December 2023.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
