O O Realty Income Corporation Loading... : Investor Sentiment and Bull/Bear Views

The author holds Realty Income and frames it as a diversified net-lease landlord with 1,842 tenants and no single tenant above 3.3% of rent. They argue investors are paying a high $12.90 per $1 of AFFO for very little dividend growth after the monthly dividend rose only 0.7% over the past year. The main stated drawback is the near-stalled dividend growth versus VICI, with no specific catalyst beyond the Q3/2026 guidance comparison.

The author, a dividend investor, reports doing well in Realty Income as the market rotated into safety. The stated mechanism is defensive rotation into dividend names; no specific catalyst or horizon is given. Main risk is that the rotation reverses.

The author holds Realty Income as roughly 12.6% of the portfolio and its second-largest position, and argues a high return-of-capital share (about 33.6% of 2025 distributions vs about 30% in 2024) is mostly depreciation rather than a sign the dividend is unsafe. The mechanism: ROC is untaxed when paid but lowers cost basis, so at a ~5.7% yield with a third ROC, roughly 1.9% of price comes off basis per year, deferring tax into a later capital gain unless basis is stepped up at death. Coverage should instead be judged on the AFFO payout ratio, which the author says is a separate number. Main stated uncertainty/risk is how non-US brokers (W-8BEN, 15% withholding) handle the ROC classification.