Realty Income Has Years Of Growth Ahead

Dividend growth investing is lots of fun, especially if you have a systematic methodology to determining which companies' dividends are safe and which ones' aren't. That is why we created a forward-looking assessment of dividend safety in our innovative, predictive dividend-cut indicator, the Valuentum Dividend Cushion™ for financial advisors. In this article, let's evaluate the investment merits of Realty Income Corp. (O), dubbed the monthly dividend company, as well as its dividend under this unique but yet very straightforward framework.

Now on to the potential growth of Realty Income Corp.'s dividend. As we mentioned above, we think the larger the "cushion" the larger capacity it has to raise the dividend. However, such dividend growth analysis is not complete until after considering management's willingness to increase the dividend. As such, we evaluate the company's historical dividend track record. If there have been no dividend cuts in 10 years, the company has a nice growth rate, and a nice dividend cushion, its future potential dividend growth would be excellent, which isn't the case for Realty Income Corp. The firm hasn't raised its dividend as aggressively in years past, which prevents it from receiving an excellent rating.

Source: Seeking Alpha

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