11 hours ago
3
Matt DiLallo, The Motley Fool
Wed, May 20, 2026 astatine 5:20 AM CDT 4 min read
Realty Income (NYSE: O) takes its monthly dividend payments seriously. The existent property concern spot (REIT) besides goes by the registered trademarked nickname of "The Monthly Dividend Company." Meanwhile, its stated ngo is to "invest successful radical and places to present dependable monthly dividends that summation implicit time."
The REIT has surely backed that up implicit the years. It precocious declared its 671st consecutive monthly dividend. That's much than fractional a period of income consistency. Here's wherefore you'll privation to buy the REIT if you tendency to make passive income.
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As bankable arsenic it gets
Realty Income has everything you'd privation successful a passive income investment. It pays a monthly dividend, making it a breeze to align your passive income with recurring expenses. The REIT presently offers a precocious dividend yield. At implicit 5%, it's respective times the output of the S&P 500, which is presently astir 1.1%. That higher output enables investors to make much passive income per dollar invested successful the REIT.
The institution backs its high-yielding monthly dividend with a precise low-risk concern model. Realty Income owns a large, diversified existent property portfolio with implicit 15,500 retail, industrial, gaming, and different properties crossed North America and Europe leased to galore of the world's starring companies. Long-term nett leases underpin its properties. Those leases make precise unchangeable currency travel due to the fact that tenants screen each spot operating costs, including regular maintenance, gathering insurance, and existent property taxes.
Meanwhile, the REIT has a fortress fiscal profile. It has a debased dividend payout ratio of 71.7% of its adjusted funds from operations. That enables it to clasp astir $1 cardinal successful escaped currency travel each twelvemonth to money caller investments. Realty Income besides has a fortress equilibrium expanse with A-rated credit.
A agelong maturation runway
Realty Income has besides successfully delivered the 2nd portion of its ngo by steadily expanding its monthly dividend. It announced its 114th consecutive quarterly dividend summation earlier this year, bringing its full to 134 raises since going nationalist successful 1994. The REIT has accrued its dividend for 31 consecutive years, increasing it astatine a 4.2% compound yearly rate.
The REIT has plentifulness much maturation ahead. It estimates the full addressable marketplace for net-lease existent property astatine astir $14 trillion crossed the U.S. and Europe. Realty Income has been steadily expanding its accidental acceptable by adding caller spot verticals and geographies. For example, it entered the U.S. information halfway marketplace successful 2023 and made its archetypal concern successful Mexico earlier this year. It expects to put $9.5 cardinal into caller properties this twelvemonth to enactment continued dividend increases.
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