A ‘Boring’ Dividend Stock With Solid Earnings

Realty Income (NYSE:O) reported fourth-quarter earnings on Tuesday, missing analyst funds from operations (“FFO”) estimates by a penny. Revenues came in at $248 million, actually beating analyst estimates of $230 million by a pretty wide margin. And you know what? I could really care less what Realty Income did last quarter. Realty Income’s quarterly numbers don’t matter to me at all. And I say this as a long-term holder of O stock.

Realty Income is one of my very favorite long-term stocks precisely because of its boring disposition. Realty Income doesn’t really “do” anything. It simply buys quality free-standing retail properties that, as a general rule, are already throwing off healthy cash flows and then converts those cash flows into monthly dividends for its shareholders. And as a triple-net landlord, Realty Income doesn’t have to worry about leaky toilets or peeling paint. All maintenance, insurance and taxes are the tenants’ responsibility. I almost feel sorry for the Wall Street analysts that cover O stock. Following a stock that is this steady and predictable must be mind-numbingly boring!

Source: InvestorPlace

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