Should I buy Realty Income stock in 2025? All You Need to Know for ZA Investors

What is Realty Income?

How much is the Realty Income stock?

The price of Realty Income stock is rising this week. As of now, the stock trades at $56.36, showing a 0.91% increase in the past 24 hours and a gain of 2.01% over the last week.

With its lower volatility and attractive dividend, Realty Income remains a compelling choice for South African investors seeking steady income from global property markets.

Our full analysis of the Realty Income stock

After reviewing Realty Income’s latest financial and operational results—with particular attention to the stock’s performance over the past three years—and rigorously integrating insights from financial indicators, technical signals, market trends, and peer group analysis through our proprietary evaluation models, a compelling narrative is taking shape. Realty Income stands at the intersection of sectoral resilience and yield-driven appeal, supported by robust fundamental and technical factors. So, why might Realty Income stock once again become a strategic entry point into the global real estate investment trust sector in 2025?

Recent Performance and Market Context

Realty Income (NYSE: O) has demonstrated a notable recovery over the past twelve months, with its share price currently at $56.36—reflecting an annual appreciation of +10.14%. Despite a marginal six-month retracement (-2.64%), the stock has exhibited robust short-term momentum, rising 2% over just the last week and closing in on the upper quartile of its 52-week range ($50.71-$64.88). This resurgence has been underpinned by not just tactical trading activity, but also by resilient macroeconomic drivers supporting commercial real estate as an asset class.

Positive recent events include the announcement of 2025 investment guidance at a record $4 billion and a sector-leading 659 consecutive monthly dividends—affirming Realty Income’s reputation as "The Monthly Dividend Company." The company’s ability to consistently raise its dividend, notably a 4.5% increase earlier this year, further cements its status among global dividend aristocrats.

From a sector perspective, the macro backdrop remains favourable for high-quality, income-generating real estate assets. Increased institutional demand for stable yield, ongoing economic resilience in key regions (US, UK, and European markets), and the re-emergence of retail and service real estate as essential infrastructure underpin Realty Income’s operating environment. For South African and other international investors, Realty Income’s status on the NYSE, high liquidity, and geographic diversification present a credible avenue for defensive portfolio construction—especially in low-rate or uncertain rate environments.

Technical Analysis

At the technical level, Realty Income’s chart structure is suggestive of imminent stability with upside potential. The 14-day RSI stands at 48.04—squarely neutral, signaling neither overbought nor oversold conditions, which often precedes a volatility contraction and subsequent break-out. More notably, the MACD (-0.23) and Williams %R (-41.08) have shifted to suggest tentative, yet strengthening, buy signals, indicating that momentum is beginning to inflect positively.

While all four major moving averages (20D through 200D) currently show marginal “sell” signals, price action has recently consolidated above a meaningful support zone at $55.56—the session low and a pivot level synchronizing with intermediate-term technical structure. Immediate upside resistance is observed at the $61-$62 range (aligned with the 200-week MA), offering a clear technical roadmap: a sustained bullish rotation through this ceiling would likely trigger further buying interest and potential revaluation.

The recent clustering of trading near all moving averages hints at a classic consolidation pattern, often a prelude to renewed trends. Given stable volumes and rising bullish oscillators, Realty Income appears situated at, or near, a medium-term technical low—an attractive entry point from a risk-reward perspective.

Fundamental Analysis

On the fundamentals, Realty Income continues to epitomize balance-sheet strength, operational efficiency, and disciplined expansion. First quarter 2025 revenues reached $1.38 billion (+9.5% YoY), handily surpassing analyst expectations by $110 million. Though EPS came in slightly below consensus ($0.28 vs. $0.35 expected), operating cash flows (AFFO per share: $1.06, +2.9% YoY) remain solid and in line with strategic targets, transparently supporting ongoing dividend growth and future portfolio investments.

Structurally, Realty Income’s innovation is apparent in its continued expansion into new geographies and sector verticals (including experiential retail, logistics, and essential services), as well as through its pioneering monthly dividend model. The company’s scale—over 15,600 properties across the US, UK, and continental Europe—provides diversification, downside risk mitigation, and consistent revenue streams.

Perhaps most compelling is Realty Income’s track record: a compounded average annual return of 13.6% since 1994, and 30 consecutive years of dividend growth, underscoring a brand and management culture that prioritizes long-term shareholder value.

Volume and Liquidity

Trading volume in Realty Income remains seasonably robust, averaging near 5.95 million shares daily over the trailing three months. This liquidity not only underpins efficient price discovery but also attracts deep institutional participation, including major global funds and pension managers. With a market capitalization of roughly $50.9 billion and a floating share structure skewed toward large, stable investors, Realty Income’s capital base supports dynamic, yet relatively low-volatility, price action—uncommon among single-sector REIT peers.

Such consistent volume speaks to market confidence and positions Realty Income amongst the most liquid property sector equities globally. Liquid stocks are, by definition, excellent candidates for tactical entry, as spreads are tight and slippage minimal, even in times of macroeconomic stress or sector reweighting.

Catalysts and Positive Outlook

• Dividend Growth: The annualized dividend increase of 4.5% (February 2025) sets a new benchmark for global REITs and demonstrates sustainable earnings power.
• Strategic Investment Plan: Management’s guidance for $4 billion investment in new assets highlights an ambitious, yet prudent, capital deployment strategy, expected to further diversify and enhance portfolio yields.
• Global Expansion: Ongoing international growth into Western Europe and the UK exposes the company to new revenue streams and shelter from single-market shocks.
• Triple-Net Lease Model: Provides visibly recurring revenues, with tenants—not Realty Income—responsible for most property-level costs, reducing expense volatility.
• ESG and Resilience: Intensifying focus on ESG metrics, with robust sustainability initiatives, attracts increasingly selective institutional capital.
• Sector Trends: The rebound in in-person retail and service consumption, coupled with resilient logistics and non-discretionary retail property demand, elevates the outlook for core holdings.

Importantly, Realty Income now stands as one of the very few REITs with both “Dividend Aristocrat” status and an international growth vector—traits highly valued in today's cross-border investment environment.

Investment Strategies

The technical, fundamental, and macro signals collectively suggest Realty Income offers a well-timed entry profile on multiple horizons:

• Short-term:
• Current price just above key support ($55.56) with momentum oscillators turning positive.
• Ideal for tactical positions around technical lows, with stop levels clearly defined.
• Medium-term:
• Anticipation of pending bursts through $61-$62 technical resistance, supported by improving revenue and AFFO guidance.
• Likely re-rating following sustained dividend increases and new acquisitions.
• Long-term:
• Powerhouse compounding profile: 13.6% annualized return since inception, continuous dividend increases, and geographic expansion.
• Strong candidate for retirement portfolios, income-seeking investors, and those seeking diversification outside SA listed property (with its different risk exposures).
• Monthly dividends also offer natural cash flow for reinvestment or drawdown strategies.

Given the confluence of recent technical base-building, supportive macro trends, and robust fundamentals, Realty Income is arguably uniquely positioned ahead of significant upside catalysts.

Is it the Right Time to Buy Realty Income?

In a global property landscape marked by both cyclical volatility and enduring secular trends, Realty Income demonstrates an enviable combination of robust income, capital preservation, and compound growth potential. Key strengths include a proven dividend policy, leading portfolio diversification, resilient financials, and dynamic capital allocation—a mixture rarely available with such strong liquidity.

With technical indicators beginning to pivot upward from a medium-term base, and a slate of positive operational catalysts in play, the current environment seems to represent an excellent opportunity for investors seeking both immediate income and long-term capital appreciation. While every portfolio decision must be tailored to individual objectives, the balance of evidence from our multi-factor review clearly favours renewed interest in this sector heavyweight—especially as Realty Income may soon enter a new bullish phase as macro and micro catalysts converge.

For those considering global real estate exposure, Realty Income stands out as a standout holding for 2025 and beyond; the convergence of technical, fundamental, and thematic strengths makes the case for this market leader ever more compelling.

How to buy Realty Income stock in South Africa?

Buying Realty Income (O) stock online is a straightforward and secure process when you use a regulated broker in South Africa. Whether you are looking to invest long-term or take advantage of price movements, you can choose between two main approaches: spot buying (owning actual shares) or trading via CFDs (speculating on the price movements without owning the asset). Both methods can be accessed fully online with robust protections for your funds. For more guidance, including a detailed broker comparison, see further down the page.

Spot Buying

A cash (spot) purchase means you buy Realty Income shares directly and become a shareholder, eligible for dividends and voting rights. Most SA brokers charge a fixed commission per order, often ranging from R60 to R200, plus a small percentage (typically 0.5%–1%) of the transaction value. Let's consider a practical example: with a $1,000 (about R18,500) investment and Realty Income at $56.36 per share, you could buy approximately 17 shares (excluding small rounding differences and including a typical $5 brokerage fee, roughly R92).

Example: Spot Buying Gain Scenario

✔️ Gain scenario:
If the share price rises by 10%, your 17 shares would now be worth $1,100.
Result: +$100 gross gain, i.e. +10% return on your original investment.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on Realty Income’s price movements without owning the shares, often using leverage to control a larger position with less capital. Fees typically include the spread (the difference between buy/sell prices) and overnight financing for positions held beyond a day. Suppose you invest $1,000 (about R18,500) with 5x leverage: your exposure is $5,000.

Example: CFD Trading Gain Scenario

✔️ Gain scenario:
If Realty Income’s stock rises by 8%, your position would gain 8% × 5 = 40%.
Result: +$400 profit on your $1,000 stake (before fees and financing costs).

Final Advice

Before investing in Realty Income or any foreign stock, it is essential to compare brokers' fees, platform features, and customer support. Always select a regulated provider that fits your needs and risk appetite. Your choice between spot buying and CFD trading should be guided by your goals—whether aiming for long-term dividend income or seeking short-term gains via price speculation. For personalised insights, consult our broker comparison table available below.

Our 7 tips for buying the Realty Income stock

The latest news about Realty Income

Realty Income posted a strong weekly stock performance, with a 2.01% increase and positive analyst forecasts. The company’s share price closed at $56.36 on May 29, 2025, reflecting robust short-term momentum supported by a consensus analyst price target of $61.74—an implied upside of approximately 9%. This upward movement, in conjunction with a one-year gain of over 10%, signals resilient investor confidence. South African investors, especially those accessing global REITs in diversified portfolios or offshore retirement structures, may view this as a constructive indicator of both short-term and sustained stability.

The company reported Q1 2025 results exceeding revenue expectations, confirming strategic execution and financial strength. Quarterly revenue reached $1.38 billion, outperforming consensus estimates by $110 million, while adjusted funds from operations (AFFO) per share matched forecasts at $1.06 and grew 2.9% year-on-year. Despite a slightly lower than expected EPS, the core profitability and cash generation remain robust. For investors in South Africa seeking reliable global dividend income through Rand-hedged instruments, the consistency of these financial results demonstrates Realty Income’s ongoing operational resilience.

Realty Income increased its monthly dividend by 1.5% and annually by 4.5% in February 2025, sustaining its “Dividend Aristocrat” status. This marks 659 consecutive monthly dividends paid and a track record of 30 years of dividend increases, underscoring stability and predictability for income-focused investors. For South African asset allocators and pension funds that prioritize dividend reliability and foreign-currency denominated returns, Realty Income’s commitment to growing distributions is a significant value proposition, especially given the company’s unique monthly dividend model.

Strategic international expansion continues, with a diversified property portfolio spanning the U.S., UK, and six European countries. The REIT’s global footprint now exceeds 15,600 properties, reducing geographic concentration risk and opening up exposure to mature and growing economies. While Realty Income does not currently own properties in South Africa, its international momentum demonstrates potential future appeal to South African investors seeking broader global property exposure, and highlights its position among REITs readily accessible via dual-listings or global ETF products available on local platforms.

Technical indicators signal a neutral to positive outlook, with MACD and Williams %R suggesting potential near-term buying opportunities. While the Relative Strength Index (RSI) stands at a neutral 48.04, the MACD has shifted to a buy signal, and Williams %R remains in buying territory, reflecting a technical setup that could appeal to tactical investors. For professionals and traders in the South African market, these technical signals complement the fundamental story, making Realty Income an attractive candidate for both core holdings and opportunistic allocations amid relatively low portfolio beta and reliable cash flow characteristics.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.