Shareholders’ Favourite Keeps Dividends Both Rising and Paid Monthly

on Jun 22, 2012

California based Realty Income Corporation (O) has been going up at a steady pace ever since it went public in 1994. For the 18 years on the New York Stock Exchange the company has had an impressive performance and has never been on decline. Its stability and steady growth has made it very attractive to investors, and rightly so, as the shareholders have had no reasons to complain over the years. 504 consecutive monthly dividend payments made over the entire history of the company attest to that.

In a Press Release on June 19, Realty Income Corporation announced on June 19 that the company’s monthly common stock dividend has increased. The Board of Directors has declared the increase from $0.1458125 to $0.146125 per share, which is the 66th dividend increase, and the 59th consecutive quarterly increase since the company’s stock started being trading on NYSE in 1994. Given the increased monthly dividends, the annualized dividend amount is now $1.7535 per share, as compared to the previous annualized dividend amount of $1.74975 per share. The annualized dividend amount is an important measurement of the company’s performance over the years. Since joining the New York Stock Exchange in 1994, Realty Income has performed admirably, almost doubling that amount over the 18 years, with the annualized dividend payment in 1994 at $0.90 per share. Not surprisingly, Tom A. Lewis, Chief Executive Officer of Realty Income commented positively on the company’s achievements.

!m[](/uploads/story/108/thumbs/pic1_inline.png)“We are pleased that our operations allow us to once again increase the amount of the dividend we pay to our shareholders,” he said.
Lewis also pointed out that the July payment will be the 504th consecutive monthly payment that the company has made since its foundation in 1969.
Realty Income won’t change its long-term policy of declaring dividends and making payments on a monthly, rather than on a quarterly basis. This commitment is hardly surprising, since the same strategy has worked quite well for the company in the past. It is indicative that the burst of the real estate bubble in 2008 and 2009 hasn’t had a negative effect on Realty Income’s performance and ability to pay to its shareholders. This is perhaps the biggest achievement of the company and for that there has to be a very strong leadership and clear vision for the future.

Realty Income is so committed to its practices, in regard to the monthly dividends payment that it proudly calls itself The Monthly Dividend Company®. And indeed, this type of strategy isn’t very common amongst other companies, which prefer paying their shareholders on a quarterly basis. The funds necessary for sustaining that structure of payments are provided from more than 2700 properties owned under long-term lease agreements with regional and national retail chains and other commercial enterprises. Realty Income is an active buyer of net-lease properties on a national level.


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