Surprise! Realty Income (O) announced a 3% increase in its cash dividends for common stockholders. This was a surprise move from the company as the last dividend increase announcement came in December 2014 with a 0.17% increase. The monthly dividend increases from $0.1834167 to $0.189 per share. The dividend is payable on Feb 17, 2015 to shareholders of record as of Feb 2, 2015. This is the 79th dividend increase since Realty Income went public in 1994.
John P. Case, Chief Executive Officer of Realty Income, commented, “We are pleased that the continued strength in our operations allows us to increase the amount of the dividend we pay to our shareholders, while still maintaining a comfortable dividend coverage ratio. The new annualized dividend amount of $2.268 represents an increase of 3.0% per share as compared to the previous annualized dividend amount of $2.201 per share. With the payment of the February 2015 dividend, shareholders will enjoy an increase of 3.75% in the amount of their dividend as compared to the same month in 2014.”
The new monthly dividend amount represents an annualized dividend amount of $2.268, up from $2.201 per share. My portfolio consists of 60 shares of Realty Income and the new increase bumps up my annual dividends from $132.06 to $136.08, an increase of $4.02.