Realty Income Corporation

O
Real EstateDividend Aristocrat
$62.02
5.22%Overvalued

Realty Income Corporation (O) is a Real Estate company that currently yields 5.22% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $47.40 and the overvaluation threshold at $64.05. Realty Income Corporation holds a quality score of 20/100 (Risky), reflecting 25 consecutive years of dividend growth. The 5-year dividend CAGR stands at 5.1%.

O Dividend Yield History — Weiss Valuation

Underval. $47.40Overval. $64.05

Distance to undervalued

Entry price is stretched

Needs 23.6% downside to reach the Weiss buy zone

Undervaluation starts near $47.40, where the annual dividend would imply roughly 6.83% yield. That is 1.61% above today's yield.

Buy-zone price

$47.40

Target yield

6.83%

Research checklist

What to clear before buying the yield

Updated May 25, 2026

Dividend durability

25Y

Long dividend history supports a deeper look.

Earnings payout

265%

Coverage deserves a closer look in filings.

Cash payout

169%

Confirm cash conversion and one-off effects.

Dividend growth

5.1%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-05-232026-05-25

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

Realty Income Corporation is trading near its historical overvaluation band.

Current yield 5.2% vs historical max 9.0% (58% of maximum).

Recent dividend history shows no sustained growth streak.

Elevated payout ratio of 265%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 20/100 quality score says the headline yield needs extra skepticism.

The earnings payout ratio is above 100%, so coverage is the first risk to unpack.

O Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$549

Year 10 Income

$1,545

Yield on Cost

16.78%

Total Income

$9,542

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

O Dividend Quality Score

Quality Score

20/ 100

Risky

Payout Ratio0/25
Dividend Streak0/25
Growth (CAGR 5Y)15/20
Yield vs History5/15
FCF Coverage0/15

Key Metrics

Current Price$62.02
Annual Dividend$3.24
Current Yield5.22%
Yield — Max (10Y)8.97%
Yield — Min (10Y)5.15%
Undervalued Below$47.40
Overvalued Above$64.05
Payout Ratio265.00%
CAGR Dividend 5Y5.1%
CAGR Dividend 10Y4.7%
Years No Cut1y

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25
consecutive years of dividend growth