Realty Income Just Declared Its 135th Dividend Increase and Reports Aug. 5. Is Now the Time to Buy?

Realty Income Just Declared Its 135th Dividend Increase and Reports Aug. 5. Is Now the Time to Buy?

Thomas Niel, The Motley Fool

Sun, August 2, 2026 at 4:49 PM GMT+3 3 min read

• O -0.61%
• NVDA +2.93%

Realty Income (NYSE: O), the real estate investment trust (REIT) known for paying a monthly dividend, next reports quarterly earnings post-market on Aug. 4, 2026. Despite concerns like the potential for higher interest rates, Realty Income's shares have held up quite well in recent months.

Recent positive developments, including the stock's latest dividend hike, may explain this. Yet while earnings should provide new insight into the REIT's long-term prospects, I wouldn't view this as a "buy before" earnings situation.

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Realty Income Q2 2026 earnings preview

For Q2 2026, the quarter ending June 30, analysts expect Realty Income to report revenue of around $1.43 billion, and funds from operations (FFO), the REIT version of earnings, of $1.09 per share, representing 7% and 2.8% year-over-year increases, respectively.

Beyond the results themselves, other factors could prompt a bullish response from investors. For instance, further news of the net lease REIT's continued move into the data center space could bode well for the stock post-earnings.

On the other hand, negative developments could materialize, such as management having to walk back its FFO guidance after raising it, whether due to interest rate trends or other macro factors.

Stay focused on the long-term picture

Irrespective of Realty Income's pre-earnings and post-earnings price action, it's important to stay focused instead on the long-term picture. This REIT, which has paid a monthly dividend and raised its payout annually since going public in 1994, should continue to deliver solid returns if these trends hold.

Currently, Realty Income has a forward dividend yield of around 5%. Despite mixed payout growth in recent years, it could accelerate in the years ahead if efforts such as the data center pivot drive greater FFO growth.

If you're concerned about further rate hikes, hold off buying for now. However, if you believe rates will hold fairly steady from here, consider it a long-term buy, especially if shares encounter any post-earnings volatility.

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Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.

Realty Income Just Declared Its 135th Dividend Increase and Reports Aug. 5. Is Now the Time to Buy? was originally published by The Motley Fool