Realty Income: Attractive Valuation And Continuing To Boost 'Income' With Options
Summarize this article with:
Cash Builder OpportunitiesInvesting Group LeaderFollow5ShareSavePlay(10min)CommentsSummaryRealty Income (O) remains a core, long-term income-focused REIT, offering a stable, growing monthly dividend and attractive valuation in a higher-rate environment.By consistently writing short strangle options on O, we have been able to significantly enhance quarterly cash flow beyond the regular dividend yield.O's current dividend yield of ~5.7% and discounted P/AFFO and P/NAV multiples highlight compelling value relative to historical averages.With steady AFFO growth and a mature profile, O's total return is driven primarily by dividends rather than significant share price appreciation, which works in our favor on the options. cagkansayin/iStock via Getty Images Written by Nick Ackerman Realty Income (O) is a popular dividend investment for income investors thanks to its consistently growing monthly payout. This name generally needs little introduction for most income investors. I hold a position in this name that IThis article was written byCash Builder Opportunities5.6K FollowersFollowCash Builder Opportunities (aka Nick Ackerman) is a former fiduciary and a registered financial advisor with 14 years of investing experience.He is the leader of the investing group Cash Builder Opportunities, where his specific focus is on closed-end funds, dividend growth stocks, and option writing as an attractive way to achieve income. He shares model portfolios and research to help investors make better decisions, via his Investing Group’s active chat room.Analyst’s Disclosure:I/we have a beneficial long position in the shares of O either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You