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Goldman drops a Sell rating on Realty Income (O): "We believe upside earnings surprise risk is...

Goldman drops a Sell rating on Realty Income (O): "We believe upside earnings surprise risk is larger in small-cap healthcare and traditional net lease REITs due to their smaller asset bases. Additionally, O trades at a 38% premium to our net lease and healthcare names on a 2013E AFFO multiple basis. Although we believe O's record of a sustainable and growing dividend will continue, we also think material dividend increases are more likely across the REIT sector (average AFFO payout of 77%) than for O (92%)." O fell 4.8% yesterday and is off 1.3% premarket.
Comments (4)
  • Bryce_in_TX
    , contributor
    Comments (2999) | Send Message
     
    I was up 45% before the drop yesterday. Bought it mainly for the dividend, plus long-term capital appreciation. Nothing has changed for me. Will look to buy more around $40 if it gets that low.

     

    "Although we believe O's record of a sustainable and growing dividend will continue" In it for the long haul, not a trading profit. Long term I look for the price to continue to appreciate.
    23 May 2013, 08:39 AM Reply Like
  • moatfrog
    , contributor
    Comments (795) | Send Message
     
    Selling great positions in a panic to "sooth" your tone regarding an upsurge in market volatility -- especially on down days (for what ever news) is a loser's game. Besides the continued dividend, if you hold your wits about you, you will be able to add to your position -- at a sale price. Believe me, when things appear most unappetizing at the stock market table, one checks his fears and concentrates on the new bargains.
    23 May 2013, 09:52 AM Reply Like
  • MasterScott
    , contributor
    Comments (8) | Send Message
     
    I sold last week at around $53.50 and was feeling a little bad after watching it hit $55+ but I had locked 30% capital appreciation so I wasn't too concerned. I feel much better about it now. If it keeps plunging in price I'll get to own it again!
    23 May 2013, 10:58 AM Reply Like
  • GregSoon
    , contributor
    Comments (150) | Send Message
     
    I would buy O if it dropped back to around a 6% yield... it's way overpriced at the moment.
    23 May 2013, 02:44 PM Reply Like
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