$O

Realty Income is a strong long-term investment; current >6% yield makes it a potential buying opportunity.

BullishHe framed it in years
“Facing Our Investing Fears”
The Motley FoolPublished Oct 5 · 5 passages

Jump to any passage

5 passages

The other stock I was going to talk about is a real estate investment trust called "Realty Incom," and its stock market symbol is O. It is the largest real estate stock I own. It recently reached its lowest level in 52 weeks, mainly due to its extreme sensitivity to interest rates.

Real estate stocks, in particular, are highly sensitive to interest rates, as they rely on borrowing more than most companies, and therefore have higher borrowing costs. The value of commercial real estate is derived from comparing the expected return to the risk-free interest rate.

I don't want to get into the details of economics, but the bottom line is that real estate stocks are very sensitive to interest rates.

The company is doing excellently, currently owning approximately 16,000 properties, most of which are independent retail stores that are resilient to the economic downturn. They have some data centers.

They have a relatively new joint venture with Digital Realty Trust. They also own other types of real estate, with a particular focus on industrial real estate .

This may be a good time to invest in some of these real estate investment trusts to achieve an excellent return on cost, i.e., return on the purchase price of the shares. These are excellent long-term investments.

I am in my forties, and this is a key element of my retirement strategy.

Currently, Realty Income pays a yield of over 6%, which is historically rare for this stock. So, now might be a good time to take a look at some of these real estate investment trusts .

What this channel has said about $O

The Motley Fool has only this one call on this stock.

2026-10-05BullishThis one
The other stock I was going to talk about is a real estate investment trust called "Realty Incom," and its stock market symbol is O. It is the largest real estate stock I own. It recently reached its lowest level in 52 weeks, mainly due to its extreme sensitivity to interest rates.
See full history ›
TickerSays