Is Realty Income's 5.3% Yield Still Compelling? Buy or Hold the Stock?

Realty Income's 5.3% dividend yield offers only a modest 50 basis point premium over the 10-year Treasury yield, raising questions about its attractiveness. With a forward P/FFO multiple of 13.45X and expected 4% AFFO growth, the stock lacks room for valuation expansion unless interest rates decline or growth accelerates. The analyst recommends a Hold rating for current shareholders while suggesting potential buyers wait for better entry points.