Should You Buy Realty Income Stock Before Aug. 5?
2026-07-30 14:05
•Will Healy •The Motley Fool
•••• • Axe Cap view
Is Realty Income a Timely Buy Before Earnings?
Realty Income’s steady dividend and recent revenue strength make it worth consideration despite past rate-driven setbacks.
Realty Income, trading on the US market, is famous for dependable monthly dividends and has now reached a 4.9% yield—far above the US average. It’s been under pressure for years because rising interest rates hit real estate investment trusts hard, but recent revenue results suggest resilience. At a price-to-FFO (funds from operations) of 15, it’s reasonably priced. What’s interesting for South African investors is the timing: the July 31 dividend cutoff means buying now secures the payout before the August 5 earnings. However, rising US rates remain a threat, and a selloff could quickly erode gains, which usually translates into rand moves given USD/ZAR volatility. Locally, it’s not a direct play, so treat Realty Income as a tactical addition to income-focused portfolios rather than a core holding. this is just our opinion and not financial advice
Buy Realty Income selectively for high dividend income before the July 31 cutoff, but trim quickly if US rates spike sharply. Keep USD/ZAR exposure in mind.
- Realty Income (O)
- USD/ZAR
- Further US interest rate hikes
- Strong USD hurting rand returns
5/10
Realty Income (O), known as 'The Monthly Dividend Company,' offers a 4.9% dividend yield significantly above the S&P 500 average of 1.1%. The article suggests buying before the Aug. 5 earnings report, with the critical dividend cutoff date being July 31. Despite underperformance over five years due to rising interest rates, the stock has recently recovered with strong revenue beats. At a price-to-FFO ratio of 15, the stock appears reasonably valued for dividend investors.
Our take is based on reporting first published by The Motley Fool.