Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, commercial retail REIT Realty Income (NYS: O) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Realty Income's business and see what CAPS investors are saying about the stock right now.
Realty Income facts
|Headquarters (founded)||Escondido, Calif. (1969)|
|Market Cap||$5.3 billion|
|Trailing-12-Month Revenue||$438.0 million|
|Management||CEO Thomas Lewis, Jr. (since 1997)
CFO Paul Meurer (since 2001)
|Return on Equity (average, past 3 years)||7.2%|
|Cash/Debt||$5.2 million / $1.9 billion|
National Retail Properties
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 18% of the 542 members who have rated Realty Income believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, CoreAndExplore, succinctly summed up the bear case for our community: "Very low growth in earnings, high valuation with a P/E around 40, and extremely slow dividend growth (combined with an already stretched payout ratio) all bodes very ill for this stock when interest rates actually begin to climb again. This stock price is artificially propped up by income investors needing some place to park their assets."
If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.