Realty Income Stock Could Soar 20%, According to a Wall Street Analyst. Is It a Buy Now?
If you're looking for businesses that can deliver a reliable stream of passive income, it's hard to go wrong with real estate investment trusts, or REITs. Shares of these specialized entities trade on public markets like regular stocks, but there's an important difference. REITs can avoid paying income taxes by distributing nearly all of their profit to investors as dividend payments.Heightened economic uncertainty has pushed shares of one of the largest publicly traded REITs, Realty Income (NYSE: O), down about 12% from a peak it reached last fall. Despite macroeconomic challenges, Stifel Nicolaus analyst Simon Yarmak recently maintained his buy rating on the stock.Yarmak also raised his bank's price target for the stock to $68 from $65.50 per share. The new target implies a gain of 20% from the stock's closing price on May 9. Let's weigh Realty Income's strengths against some challenges it faces to see if this could be a smart addition to your income-generating portfolio.Continue reading
If you're looking for businesses that can deliver a reliable stream of passive income, it's hard to go wrong with real estate investment trusts, or REITs. Shares of these specialized entities trade on public markets like regular stocks, but there's an important difference. REITs can avoid paying income taxes by distributing nearly all of their profit to investors as dividend payments.
Heightened economic uncertainty has pushed shares of one of the largest publicly traded REITs, Realty Income (NYSE: O), down about 12% from a peak it reached last fall. Despite macroeconomic challenges, Stifel Nicolaus analyst Simon Yarmak recently maintained his buy rating on the stock.
Yarmak also raised his bank's price target for the stock to $68 from $65.50 per share. The new target implies a gain of 20% from the stock's closing price on May 9. Let's weigh Realty Income's strengths against some challenges it faces to see if this could be a smart addition to your income-generating portfolio.
