Realty Income Beats S&P 500 in 11 of 13 Market Corrections Since 1994
Realty Income has outperformed the S&P 500 in 11 of 13 market corrections since 1994, with an average drawdown of just 2.6% compared to the index's 22.6%. The Motley Fool cites the REIT's low beta, investment-grade credit rating, and diversified net-lease portfolio as key drivers of this defensive performance and long-term total return.
The Motley Fool attributes Realty Income’s resilience to a fortress balance sheet with an A3 credit rating and a portfolio of roughly 15,600 properties leased to over 1,800 non-discretionary clients. This structure supports a beta of just 0.5, meaning the stock typically moves at half the rate of the broader market, while a dividend payout ratio under 75% of FFO allows for continued growth during downturns.
Source: The Motley FoolRealty Income’s average drawdown of 2.6% in market sell-offs contrasts sharply with the S&P 500’s 22.6% average decline.
Source: Yahoo Finance
