Real estate investment trust (REIT) Realty Income (NYSE: O) is a dividend investor favorite. A monthly payment coupled with an incredible 26 years of annual dividend increases (putting the landlord into the rarefied Dividend Aristocrat space) are two notable reasons for this. But one negative today is Realty Income's historically low 3.7% yield, suggesting that shares are trading at a premium price. That, however, is good news for existing shareholders, since it helps support the REIT's growth plans.
Here's what Realty Income has been doing lately on that front and why.
In early September, Realty Income announced that it was buying 454 properties for a whopping $1.25 billion in cash. The deal was so big that management actually increased its full-year acquisition guidance by as much as 40% to account for the transaction's impact on its original plans. With a portfolio of nearly 6,000 properties, it takes material acquisitions like this to move the needle at the bellwether net lease REIT -- buying one or two small properties just won't make much of a difference at this stage in the company's life. So taking advantage of the opportunity to buy a massive portfolio makes complete sense.