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• Reliable Monthly Income: Realty Income offers a 5.4% dividend yield paid monthly, providing steady cash flow for investors seeking passive earnings.
• Proven Track Record: With over 30 years of consecutive dividend increases, it's a dependable choice in uncertain markets, though past performance doesn't guarantee future results.
• Diversified Portfolio: As a REIT, it owns thousands of properties across various industries, reducing risk, but remember, real estate can be affected by economic shifts.
• Growth Potential: Expanding into Europe and new sectors like data centres, suggesting room for future growth, while acknowledging market volatility.

Imagine waking up each month to a fresh deposit in your account – not from a job, but from smart investing. That's the appeal of high-yielding dividend stocks like Realty Income (NYSE: O). In a world where savings accounts offer tiny returns, this stock stands out with its 5.4% annual dividend yield and monthly payouts. But is it too good to be true? Research suggests it's a solid option for income-focused investors, though it's wise to consider the broader market context.

Why Consider Dividend Stocks?

Dividend stocks can be a great way to build wealth over time. They pay you a share of the company's profits regularly. Realty Income—widely known as “The Monthly Dividend Company”—has upheld that commitment reliably for decades. For example, if you invest £5,000 ata 5.4% yield, you could earn about £270 yearly in dividends, paid monthly for better cash flow.

What Makes Realty Income Special?

It's a real estate investment trust (REIT), which means it owns properties and rents them out. Tenants handle most costs, making it low-maintenance for the company. This setup allows high dividends, as REITs must pay out at least 90% of profits to shareholders. Compared to stocks like John Deere (DE), which offers a lower 1.4% yield but has increased dividends for many years, Realty Income shines for monthly income seekers.

Quick Tips for Investors

Before buying, check the company's free cash flow and earnings. Realty Income's history shows strength here, but always diversify your portfolio.

In the ever-changing world of investing, finding a stock that combines high yields with reliability is like discovering a hidden gem. Realty Income Corporation (NYSE: O) has earned its nickname as "The Monthly Dividend Company" by delivering consistent monthly dividends to shareholders while steadily increasing those payouts for more than three decades. With a current annual dividend yield hovering around 5.4%, it's attracting attention from income-focused investors who want predictable cash flow without the hassle of managing properties themselves. But what exactly makes this stock tick? Let's dive deep into its story, business model, performance, and why it might – or might not – fit into your investment strategy. We'll explore everything from its humble beginnings to its global expansion, backed by facts and stats, and even compare it to other dividend payers like John Deere for perspective.

Understanding Realty Income: A Beginner's Guide to REITs

First things first – what is a REIT? Think of it like a company that owns lots of buildings and shops, but instead of you buying a whole shop, you buy a tiny piece of the company. Realty Income is a special type called a triple-net lease REIT. That means when they rent out a property to a shop like a grocery store, the renter has to pay for things like taxes, insurance, and fixes – not Realty Income. This keeps costs low for the company, so they can give more money back to you as dividends.

Founded back in 1969 by William and Joan Clark in California, Realty Income started small. They bought their first property – a Taco Bell restaurant – straight from the founder of Taco Bell himself. The idea was simple: buy good properties, rent them to strong businesses, and use the rent to pay monthly dividends that grow over time. Today, that's still the core plan, but on a much bigger scale.

As of mid-2025, Realty Income owns or has interests in over 15,600 properties. These are spread across all 50 US states, the UK, and seven other European countries. They're leased to about 1,630 different clients in 91 industries. That's huge diversification – if one industry struggles, others can pick up the slack. For instance, their tenants include everyday essentials like convenience stores (think 7-Eleven), dollar stores (Dollar General), and pharmacies (Walgreens). They also have bigger names like Wynn Resorts for casinos.

This spread helps keep things stable. In the first half of 2025, their properties were 99% occupied – the highest in over 20 years. That means almost all their buildings are rented out, bringing in steady money.

Key Stats on Realty Income's Portfolio

Here's a quick table to show how diverse their holdings are:

This table highlights why diversification matters – it reduces risk from any single area.

The Dividend Story: 5.4% Yield and Monthly Payouts Explained

Now, let's talk about what draws most people in: the dividends. As of September 2025, Realty Income's annual dividend is around $3.21 per share, giving a yield of about 5.38% based on a stock price of roughly $59.77. But articles often round it to 5.4% for simplicity, and it can fluctuate with the stock price.

What sets it apart is the monthly payout. Most stocks pay quarterly (every three months), but Realty Income sends money every month – like a regular paycheck. For the three months ended June 30, 2025, they paid $0.806 per share, up 3.7% from the year before.

And the increases? They've raised the dividend 132 times since going public in 1994, with a compound annual growth rate (CAGR) of 4.2%. That's over 30 years of hikes, making them part of the S&P 500 Dividend Aristocrats index. In total, they've declared 663 consecutive monthly dividends.

To put this in perspective, let's compare with John Deere (NYSE: DE), another long-time dividend payer. Deere has increased dividends since the 1970s, with a current yield of about 1.4% and an annual payout of $6.48 per share. It's great for growth in farming equipment, but its quarterly payments and lower yield make it less ideal for monthly income needs. Realty Income's higher yield suits retirees or those wanting frequent cash.

Historical Dividend Growth Table

Here's a look at Realty Income's dividend growth over the years: