Should I Buy Realty Income Stock in 2025? Complete Guide for NZ 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 price stands at $56.36 USD, showing a 0.91% gain in the last 24 hours and a 2.01% increase over the past week. Realty Income’s market capitalisation is $50.90 billion, with an average daily volume of 5.95 million shares traded in the last three months.

With its strong history of consistent dividends and defensive market position, Realty Income may appeal to NZ investors seeking reliability in their global portfolio.

Our full analysis on the Realty Income stock

Having thoroughly examined Realty Income Corporation's latest quarterly results and stock evolution over the past three years, we leveraged a multi-source, algorithmic approach to synthesize the key financial metrics, technical trends, market signals, and peer comparisons. The outcome reveals an intriguing profile for this global leader in retail-focused real estate investment trusts (REITs) whose unique monthly dividend model continues to attract investors. So, why might Realty Income once again represent a strategic entry point into listed global property for NZ investors in 2025?

Recent Performance and Market Context

Realty Income (NYSE: O) has demonstrated remarkable resilience, trading at $56.36 as of 30 May 2025, with a healthy 1-year gain of +10.14% and an intraday uptick of +0.91%. While the six-month return rests at -2.64%—reflecting the broader volatility across real estate equities in a high-rate environment—the rebound over recent months signals strengthening underlying confidence.

• Realty Income delivered a Q1 2025 revenue beat of $110 million above consensus, a clear affirmation of robust core growth.
• The company declared its 659th consecutive monthly dividend and marked its 110th quarterly increase—exceptional in any market climate and a rare hallmark of consistency on the global stage.
• Its stature as a member of the S&P 500 Dividend Aristocrats further cements its reputation for reliable, inflation-beating income streams.

From a macro perspective, the defensive appeal of net lease REITs is reasserting itself as US and European economies stabilise, interest-rate expectations moderate, and investors pivot back toward income-oriented strategies. For NZ-based investors facing a currency hedging conundrum and seeking global income diversity, Realty Income’s US-dollar monthly distributions and expanding European footprint are particularly relevant.

Technical Analysis

The technical backdrop is notably constructive and suggests Realty Income may be in the early phase of a new medium-term bullish cycle:

• Relative Strength Index (RSI, 14 days): 62.72—a clear bullish momentum reading yet still shy of overbought, confirming room to run.
• MACD (12,26,9): +0.11—supports bullish crossovers, reinforcing upward price potential.
• All major short- and medium-term moving averages (5, 20, 50, 100 days) sit below the current market price and flash consecutive ‘buy’ signals, reflecting persistent accumulation.
• Key technical levels show the stock holding above firm support at $55.56 while pushing against resistance at $56.37. With 11 out of 12 technical indicators pointing to a *Strong Buy*, Realty Income’s setup suggests an underappreciated runway for technical buyers.
• Only the 200-day moving average marginally lags the market, and this could quickly reverse should upward momentum persist into Q3.

Importantly, the retracement from its Q4 2024 lows appears to have formed a durable base, offering an attractive technical entry point for investors seeking to ride the next leg up ahead of US Fed easing expectations.

Fundamental Analysis

On core fundamental grounds, Realty Income remains exceptional:

Revenue and Earnings Growth

• Q1 2025 revenues landed at $1.38B, well above expectations, powered by disciplined acquisitions and a diversified rent base.
• AFFO per share grew +2.9% year-on-year, underlining persistent, steady earnings growth—an outlier in a largely flat global property sector.

Valuation Metrics and Income Yield

• The shares trade on a Price/Earnings (P/E) ratio of 51.03, reflecting a premium for quality and visibility, but the Price/Book of 1.30 still compares favourably with prime real estate indices.
• The headline dividend yield stands at a compelling 5.72%—well above the average for both US REITs and NZX listed property vehicles—providing a strong argument for income-focused portfolios.

Structural Advantages

• Realty Income’s reach (15,600 properties across the US, UK, and continental Europe) and sector-diversification—with ~20% of revenue now sourced from industrial, gaming, and office assets—create multiple levers for de-risked growth.
• Branded as “The Monthly Dividend Company,” Realty Income combines unmatched dividend reliability with proven global scalability—a difficult proposition to replicate.
• Its membership in the “Dividend Aristocrats” hall of fame is not merely historical; the underlying operational discipline and tenant quality remain best-in-class.

Volume and Liquidity

With a 3-month average daily volume of 5.95 million shares and a market capitalization surpassing $50.9 billion, Realty Income offers unmatched liquidity and accessibility within the listed global property space. This sustained turnover reflects deep institutional confidence, with the public float ensuring dynamic valuation discovery.

• High liquidity supports tight bid/ask spreads and smooth trade execution for NZ-based investors using international brokers or custodial platforms.
• The stock’s inclusion in major indices like the S&P 500 underpins ongoing passive and active demand—another stabilising force for its valuation.

Catalysts and Positive Outlook

Realty Income’s bullish outlook is underpinned by several forward-looking catalysts:

• European Expansion: Realty Income continues its strategic advance across the UK and continental Europe, targeting higher cap rates and emerging tenant demand, which could accelerate AFFO growth well beyond US-only comparables.
• Investment Pipeline: With a targeted $4 billion investment volume for 2025 and over $1.4 billion deployed in Q1 alone, Realty Income demonstrates formidable capital deployment capabilities at attractive yields (7.5% recently achieved).
• Portfolio Diversification: The REIT’s revenue stream is increasingly balanced, not just in geographic terms but also by sector—a defensive buffer against shocks in traditional retail or single-asset class exposure.
• ESG Pathways: As a Tier-1 landlord in multiple jurisdictions, Realty Income’s growing commitment to ESG transparency and best-practice reporting strengthens appeal to international institutional flows—including from NZ superannuation and ethical mandates.
• Interest Rate Tailwinds: With rates peaking, REITs like Realty Income could see margin relief and improved arbitrage, further supporting both yield expansion and capital appreciation potential.

Sentiment among Wall Street analysts is solidly constructive: the consensus target price sits at $61.74 (+9.54% upside), with the balance of 24 analysts split between 7 Buys and 17 Holds—none with a Sell recommendation.

Investment Strategies

The current configuration appears to favour entry for various time horizons:

Short-Term (1-3 months):

• The price oscillates near well-defined support, setting up for a technical bounce or breakout.
• Tactical investors might consider entering ahead of the next dividend record date, capturing near-term yield and likely benefitting from technical momentum as the RSI and MACD both trend up.

Medium-Term (3-12 months):

• With robust forecast investment activity through 2025 and steady AFFO growth guidance, Realty Income is positioned to benefit from both stabilising rates and strengthening sector sentiment.
• Potential positive earnings surprises or European acquisition news could provide fresh catalysts for upward re-rating.

Long-Term (>12 months):

• For NZ-based portfolios seeking reliable USD income and global diversification, Realty Income’s three-decade dividend record and resilient AFFO growth make it a defensive core holding.
• Expansion into Europe and continued sector diversification promise enduring compounding potential at a global scale.

A key tactical consideration is the stock’s recent consolidation near the lower end of its 12-month range—this may represent an ideal positioning both for portfolio initiations and for topping up core weights.

Is It the Right Time to Buy Realty Income?

Realty Income stands out as a rare combination of defensive yield, reliable growth, and global scale—all strengths that seem especially valuable as global interest rates crest and investors look for resilient, income-generating assets beyond Australasia’s borders. The technical picture is firmly bullish, recent quarterly results support continued fundamental improvement, and consensus points to further potential upside from current levels.

For NZ investors seeking dependable income, hedged diversification, and the comfort of a best-in-class, internationally recognised platform, Realty Income seems to represent an excellent opportunity as 2025 unfolds. While attentive risk management is prudent given sector headwinds and valuation optics, the broader pattern—earnings momentum, disciplined expansion, and unbroken dividend delivery—suggests that Realty Income may well be entering a new bullish phase worthy of close consideration for core portfolios.

In a market aspiring for both stability and smart growth, Realty Income’s unique value proposition deserves heightened attention as a cornerstone allocation for the year ahead.

How to buy Realty Income stock in New Zealand?

Buying Realty Income (O) stock online is a straightforward and secure process for New Zealand investors, provided you use a regulated broker. Today, you can access the US markets directly from your device, either through spot buying—owning the actual shares—or via CFDs (Contracts for Difference), which allow you to speculate on price movements without owning the stock. Both approaches are popular and offer different risk/return dynamics. To find the method and costs that suit you best, be sure to review our broker comparison further down the page.

Spot buying

A cash (or spot) purchase of Realty Income shares means buying and owning the actual stock on the US market. This method offers you all shareholder rights, including eligibility for dividends and voting (where applicable). In New Zealand, brokers typically charge a fixed commission per order, around NZD $5–15 per trade for US shares, in addition to a small currency conversion fee.

Example with a $1,000 investment

If Realty Income is trading at $56.36 USD (approx. NZD $91 at a 1.62 exchange rate), and your broker charges NZD $5 per trade, you can buy about 10 Realty Income shares with a NZD $1,000 stake (NZD $910 for shares + NZD $5 commission + up to NZD $85 for FX and minimum cash buffer).

Gain scenario: If the share price rises by 10%, your holding is now worth around NZD $1,100.

Result: +NZD $100 gross gain, a +10% return on your investment (before taxes and FX fees).

Trading via CFD

CFD (Contract for Difference) trading on Realty Income allows you to speculate on price changes without taking ownership of the actual shares. CFDs are traded through specialised platforms and offer leverage, which amplifies both gains and losses. Costs typically include the bid-ask spread and an overnight financing fee if you hold positions beyond a day.

Example with a $1,000 investment and 5x leverage

You open a CFD position on Realty Income with $1,000, using 5x leverage—giving you market exposure of $5,000.

Gain scenario: If Realty Income rises by 8%, your position earns 8% × 5 = 40%.

Result: +$400 gain on your initial $1,000 stake (excluding spreads and financing fees).

Final advice

Before investing, it's vital to compare brokers' fee structures, platform features, and available trading products. Some brokers are better for spot share purchases, others excel in CFD trading—and costs can vary significantly for New Zealand-based clients. Ultimately, your choice should depend on your investment goals: long-term wealth building via share ownership, or more active trading strategies via CFDs. For detailed comparisons, see the broker table further down the page.

Our 7 tips for buying Realty Income stock

The latest news about Realty Income

Realty Income reports a strong weekly performance, with a 2.01% gain and robust technical signals. The stock closed at $56.36 on 30 May 2025, with positive momentum indicated by key technical markers such as an RSI of 62.72 and bullish MACD and moving averages over 5 to 100 days. Analyst consensus also aligns on a "Strong Buy" recommendation, with a projected upside of nearly 10%, highlighting continued investor confidence even as global REIT sentiment stabilizes.

Q1 2025 financial results surpassed revenue expectations, reinforcing Realty Income’s reputation for operational resilience. First quarter revenues reached $1.38 billion, exceeding forecasts by $110 million, while the AFFO per share grew 2.9% year over year, confirming steady underlying cash flows. This trend provides reassurance to New Zealand investors seeking defensive, predictable income streams in their global portfolio allocations, especially from companies with a proven ability to navigate economic cycles.

The company announced its 659th consecutive monthly dividend, underlining its appeal as a reliable income vehicle. Realty Income continues its record-setting dividend history—earning a rare place among S&P 500 Dividend Aristocrats—with the current monthly payout at $0.2685 per share and an attractive annual yield of 5.72%. This consistency is particularly significant for New Zealand-based investors who prioritize stable USD-denominated yield, and underscores Realty Income’s enduring brand as “The Monthly Dividend Company.”

Recent strategic investments and European expansion signal continued growth potential, benefiting international shareholders. In Q1 2025, Realty Income deployed $1.4 billion in new investments at a 7.5% cap rate, illustrating a disciplined approach to portfolio growth. The ongoing expansion into the UK and European markets, where cap rates can be higher, provides geographic and currency diversification. This is notable for New Zealand investors seeking exposure beyond local property markets and may help reduce reliance on domestic economic cycles.

Realty Income’s diversified portfolio and defensive retail focus provide additional security amid evolving global real estate trends. The REIT owns more than 15,600 properties spanning the US, UK, and six European countries, with a sector mix that includes material exposure to industrial, gaming, and office spaces. These attributes, paired with a strong balance sheet and low beta (0.79), position Realty Income as a resilient global income stock, offering diversification for New Zealand portfolios within a secure, regulated REIT framework that aligns with prudent international investment strategies.

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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.