How Realty Income’s Dividend Yield Looks
Revenue and earnings
Realty Income (O), a retail REIT engaged in US real estate investment, recorded 8% revenue growth in 2016, compared with 10% growth in 2015. The growth was driven by rentals and tenant reimbursements.
Its operating costs and other expenses (including interest expenses) rose 6% in 2016 and 8% in 2015. Its gains on asset dispositions have fallen over the years, and its EPS (earnings per share) rose 4% in 2016 and 5% in 2015. The company has generated positive FFO (funds from operations) since 2014, in addition to recording growth.
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Revenue and EPS in 1H17
Realty Income’s revenue grew 11% in 1H17, driven by rental and tenant reimbursements. Its operating costs and other expenses rose 10%, and it saw a higher gain on the sale of assets. In 1H17, its EPS grew 8%, and its FFO grew 12%.
Whereas company’s dividend payout rose between 2015 and 2016, it fell between 1H16 and 1H17.
The WisdomTree International SmallCap Dividend ETF (DLS) offers a dividend yield of 2.7%, at a PE (price-to-earnings) ratio of 15x. It has major exposure to the Asia-Pacific region and Europe. It has a 20%, 13%, 7%, and 7% exposure to the consumer cyclical, financial, consumer non-cyclical, and real estate spaces, respectively. The WisdomTree Japan SmallCap Dividend ETF (DFJ) has a dividend yield of 1.7%, at a PE ratio of 14.9x. It has a 22%, 11%, 7%, and 3% exposure to the consumer cyclical, financial, consumer non-cyclical, and real estate spaces, respectively.