Realty Income Has Raised Its Dividend 113 Consecutive Times.
Here Is Why That Is Not Enough to Own It Right Now Quick Read – Realty Income (O) trades at a forward P/E of 40 with only 2.8% expected AFFO growth in 2026, while carrying 7.91x net debt to EBITDA and facing concentrated tenant risk from top 20 clients representing 35.8% of base rent
AbbVie (ABBV) raised its quarterly dividend 5.5% to $1.73 with Q1 revenue up 12.4% year-over-year, Skyrizi sales surging 30.9% to $4.48 billion, and a more sustainable 48.8% payout ratio supported by 70.2% gross margins and 6.94x interest coverage. – Income investors are increasingly abandoning stretched net lease valuations and high leverage for pharmaceutical dividend growth, as AbbVie’s expanding earnings base and lower forward multiple of 14 offer better long-term wealth building than Realty Income’s debt-funded yield. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and AbbVie wasn’t one of them. Get them here FREE. Realty Income (NYSE:O) is dominating dividend feeds on Reddit and X again, with monthly-payer loyalists pointing to its 113th consecutive quarterly dividend increase as proof you can collect a check and tune out the rest of the market.
The underlying numbers tell a different story. The Math On O Has Quietly Broken O trades at a trailing P/E of 55 and a forward P/E of 40, valuations that belong to a growth name, not a net lease REIT carrying 7.91x net debt to EBITDA and only 1.47x interest coverage. The numbers underneath that multiple are deteriorating.