Realty Income: Steep Plunge Refreshed Another Massive Buying Opportunity

  • Realty Income Corporation investors were likely stunned as O collapsed toward the lows last seen in October 2022, giving up the gains it built up in 2023.
  • The downward spiral in O is likely linked to the recent surge in the 10Y Treasury yield, as investors braced for a still-hawkish Fed, pricing in prolonged interest rate headwinds.
  • Realty Income’s robust business model suggests that its dividend payouts aren’t expected to be at risk. As such, I expect income investors to return and defend the recent hammering.
  • I make the case for why O’s battering could be peaking as the market has priced in further weakness, worsened by the challenge facing the commercial real estate market.
  • Maintain Buy, but investors shouldn’t expect a rapid recovery as seen in October 2022. Patience is much appreciated.
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Realty Income Corporation (NYSE:O) investors have suffered another meltdown, as the selling carnage forced a battering that took O back toward lows last seen in October 2022.

As such, despite posting a robust second-quarter or FQ2