3 Bold Predictions for Realty Income in 2026

• Realty Income has underperformed the marketplace by a important borderline implicit the past decade.

• I’m predicting that 2026 is the twelvemonth we'll spot this change.

• I deliberation Realty Income volition not lone execute good but volition besides person an progressive twelvemonth of acquisitions.

• 10 stocks we similar amended than Realty Income ›

Large-cap existent property concern spot (REIT) Realty Income (NYSE: O) hasn't precisely been a large performer successful caller years. Over the past decade, the banal has produced a 93% full instrumentality for investors, which mightiness not dependable excessively atrocious until you recognize the S&P 500 has produced a 337% full instrumentality implicit the aforesaid period.

To beryllium fair, determination are immoderate bully reasons for this. For overmuch of the past decade, we've been successful rising-rate environments, positive we had a planetary pandemic that resulted successful the bulk of Realty Income's properties being temporarily closed.

However, I consciousness that 2026 could beryllium a antithetic concern entirely. Here are 3 bold predictions I'm making for the coming year.

The archetypal bold prediction is simply a elemental one. I judge involvement rates volition autumn importantly successful 2026, and I'm not conscionable talking astir the Federal Reserve's complaint cuts. Longer-term rates, specified arsenic the 10-year Treasury yield, could inclination sharply little arsenic well.

REITs are highly rate-sensitive stocks, and passim its 32-year publically traded history, Realty Income has averaged a 13.7% full return, with mostly amended results erstwhile rates fall. So, I'm predicting that Realty Income volition nutrient a full instrumentality successful 2026 that outperforms the S&P 500.

Based connected the company's guidance, Realty Income is expected to study $5.5 cardinal successful investments for 2025 erstwhile we spot year-end results successful a fewer weeks. This is simply a ample measurement of acquisitions, adjacent for a REIT arsenic ample arsenic Realty Income. But I deliberation 2026 volition beryllium adjacent bigger. As rates autumn and the outgo of superior becomes much advantageous, I deliberation Realty Income's absorption volition measurement connected the gas, particularly erstwhile it comes to newer concern areas specified arsenic information centers and gaming properties.

Since listing connected the New York Stock Exchange successful 1994, Realty Income has averaged a 4.2% dividend maturation rate. Over the past decade, Realty Income's dividend has grown astatine a overmuch slower 3.5% annualized rate. But I'm predicting that improving marketplace conditions volition let Realty Income to rise its monthly payout by a full of 5% oregon much by the extremity of 2026.