O vs SPG: Dividend Yield, Growth & Safety Comparison
Realty Income Corporation (O) and Simon Property Group Inc. (SPG) are both in the Real Estate sector, making them natural rivals for dividend investors. O edges ahead on yield at 5.02% versus SPG's 4.36%. For dividend growth, SPG leads with a 5-year CAGR of 10.0% versus O's 8.2%. O holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | O | SPG |
|---|
| Dividend Yield | 5.02% | 4.36% |
| Annual Dividend | $3.21 | $8.55 |
| 5-Year CAGR | 8.2% | 10.0% |
| Payout Ratio | 3% | 60% |
| Consecutive Years | 0 | 4 |
| Price | $65.62 | $197.66 |
Yield Comparison
Realty Income Corporation (O) currently yields 5.02%, which is attractive for the broader market. That's 0.66% more than Simon Property Group Inc. (SPG), which yields 4.36%. In dollar terms, O pays $3.21/share annually versus SPG's $8.55/share.
Dividend Growth
Over the past five years, SPG has grown its dividend at a 10.0% 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%. SPG: Dividend growth is slowing — the 3-year CAGR of 7.1% trails the 5-year rate of 10.0% and the 10-year rate of 6.4%.
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. SPG's dividend safety is rated "Moderate." The payout ratio of 60% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x. O's payout ratio of 3% is more conservative than SPG's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in O generates approximately $502/year in dividend income, compared to $436/year from SPG — a difference of $66/year. At $100,000, that gap widens to $660/year.
Verdict
- Best for income: O
- Best for growth: SPG
- Best for safety: O
Frequently Asked Questions
Which has a higher dividend yield, O or SPG?
Realty Income Corporation (O) has a higher dividend yield of 5.02% compared to Simon Property Group Inc. (SPG) at 4.36%.
Is O or SPG a better dividend growth stock?
Simon Property Group Inc. has the stronger dividend growth with a 5-year CAGR of 10.0%, compared to Realty Income Corporation's 8.2%.
Which is safer for dividend income, O or SPG?
Realty Income Corporation's dividend safety is rated "Safe" while Simon Property Group Inc. is rated "Moderate." 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 60% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x.
How much income does $10,000 in O vs SPG generate?
A $10,000 investment in O generates approximately $502/year in dividends, while the same amount in SPG generates about $436/year.
Which has a lower payout ratio, O or SPG?
Realty Income Corporation has a lower payout ratio of 3% compared to Simon Property Group Inc.'s 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
O vs SPG: which is better for retirement income?
It depends on your priorities. O for current income, SPG for dividend growth, O for safety. Many retirement investors hold both for diversification.
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