O vs PLD: Dividend Yield, Growth & Safety Comparison
Realty Income Corporation (O) and Prologis, Inc. (PLD) are both in the Real Estate sector, making them natural rivals for dividend investors. O offers a significantly higher 5.02% yield compared to PLD's 2.88%, a gap of 2.14%. For dividend growth, PLD leads with a 5-year CAGR of 12.5% versus O's 8.2%. Both stocks carry a "Safe" dividend safety rating. PLD is a Dividend Contender with 12 years of consecutive increases.
Key Metrics Comparison
| Metric | O | PLD |
|---|
| Dividend Yield | 5.02% | 2.88% |
| Annual Dividend | $3.21 | $4.04 |
| 5-Year CAGR | 8.2% | 12.5% |
| Payout Ratio | 3% | 1% |
| Consecutive Years | 0 | 12 |
| Price | $65.62 | $138.93 |
Yield Comparison
Realty Income Corporation (O) currently yields 5.02%, which is attractive for the broader market. That's 2.14% more than Prologis, Inc. (PLD), which yields 2.88%. In dollar terms, O pays $3.21/share annually versus PLD's $4.04/share.
Dividend Growth
Over the past five years, PLD has grown its dividend at a 12.5% CAGR compared to O's 8.2%. O: Dividend growth is accelerating — the 3-year CAGR of 11.4% exceeds the 5-year rate of 8.2% and the 10-year rate of 5.6%. PLD: Dividend growth is slowing — the 3-year CAGR of 7.8% trails the 5-year rate of 12.5% and the 10-year rate of 10.2%.
Dividend Safety
O's dividend safety is rated "Safe." The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x. PLD's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x. Both have similar payout ratios — O at 3% and PLD at 1%.
Income Comparison
A $10,000 investment in O generates approximately $502/year in dividend income, compared to $288/year from PLD — a difference of $214/year. At $100,000, that gap widens to $2140/year.
Verdict
- Best for income: O
- Best for growth: PLD
Frequently Asked Questions
Which has a higher dividend yield, O or PLD?
Realty Income Corporation (O) has a higher dividend yield of 5.02% compared to Prologis, Inc. (PLD) at 2.88%.
Is O or PLD a better dividend growth stock?
Prologis, Inc. has the stronger dividend growth with a 5-year CAGR of 12.5%, compared to Realty Income Corporation's 8.2%.
Which is safer for dividend income, O or PLD?
Realty Income Corporation's dividend safety is rated "Safe" while Prologis, Inc. is rated "Safe." The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x. The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x.
How much income does $10,000 in O vs PLD generate?
A $10,000 investment in O generates approximately $502/year in dividends, while the same amount in PLD generates about $288/year.
Is O or PLD a Dividend Aristocrat?
Prologis, Inc. is a Dividend Contender with 12 consecutive years of increases. Realty Income Corporation does not currently qualify for aristocrat status.
Which has a lower payout ratio, O or PLD?
Prologis, Inc. has a lower payout ratio of 1% compared to Realty Income Corporation's 3%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
O vs PLD: which is better for retirement income?
It depends on your priorities. O for current income, PLD for dividend growth. Many retirement investors hold both for diversification.
O Dividend Analysis | PLD Dividend Analysis | All Comparisons | Comparison Tool