Motley Fool columnist Leo Sun says he would invest $1,000 or more in Realty Income despite rising bond yields, citing its 5.9% forward yield and projected 2026 adjusted funds from operations of $4.44–$4.45 per share, above its $3.26 forward dividend.
Realty Income owns more than 15,500 commercial properties, leased to roughly 1,800 clients across 92 industries, and mainly targets businesses such as convenience stores, drugstores and discount retailers. Its occupancy rate has stayed above 96% since its 1994 IPO, and it has raised its payout 136 times since going public.
At the roughly $55 share price cited, the stock trades at about 12 times its 2026 AFFO estimate. The article says the 10-year Treasury yield recently topped 5% for the first time since 2007, making bonds more competitive with dividend stocks. It also notes Realty Income was not among the 10 picks in the Stock Advisor list discussed; Sun and The Motley Fool disclose positions in the stock, and the firm recommends it.
