Realty Income eyes 2026 growth as falling interest rates fuel expansion plans
Realty Income is poised for a robust 2026, with analysts anticipating significant growth. The company's stock could benefit from declining interest rates, while its investment strategy shifts towards new sectors like data centers and gaming properties. Wall Street forecasts also indicate a steady rise in dividends next year.
The firm is expected to invest $5.5 billion in 2025. However, 2026 may bring even larger deals as management plans to expand into newer areas beyond traditional retail and industrial properties.
Analysts expect lower interest rates to bolster Realty Income's performance. The 10-year Treasury yield is projected to drop sharply, making borrowing cheaper. This shift could help the company outpace the S&P 500 in 2026. Dividend growth has slowed over the past decade, averaging 3.5% annually. However, the company has maintained a stronger long-term average of 4.2% since its 1994 NYSE listing. For 2026, predictions suggest a total dividend increase of at least 5%. Fourteen Wall Street analysts have set price targets for Realty Income stock in 2026. The highest estimate reaches $68.00, while the average sits between $62.50 and $62.59. The lowest forecast ranges from $59.00 to $60.00.
With interest rates expected to decline, Realty Income's stock and dividend growth could see a lift in 2026. The company's push into new investment sectors may also drive further expansion. Analysts remain optimistic about its financial outlook for the year ahead.
