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Jennifer Saibil, The Motley Fool
Thu, April 30, 2026 astatine 7:50 AM CDT 3 min read
Dividend stocks aren't usually the astir breathtaking stocks connected the market. They're usually older, well-established stocks that person a batch of currency and aren't increasing each that fast. However, the worth they supply successful their stableness and reliability, arsenic good arsenic their passive income, marque them an indispensable portion of a status plan.
Realty Income (NYSE: O) is 1 of the champion dividend stocks you tin buy. Here's wherefore this understated banal is well-loved by dividend investors and could adhd unthinkable worth to a status portfolio.
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It starts with the exemplary
Any dividend banal starts with an fantabulous institution that has a reliable means of expanding currency and backing the dividend. Realty Income is simply a existent property concern spot (REIT), a concern operation wherever companies wage 90% of their net arsenic dividends.
Not each REITs are the same, though. They typically ain and lease properties, and they thin to specialize successful antithetic industries. Realty Income is simply a retail-focused REIT, leasing its properties to ample essentials chains specified arsenic Walmart and Lowe's. About 21% of its leases are to market chains and convenience stores, and its apical 3 clients are 7-Eleven, Dollar General, and Walgreens. These are the kinds of "boring" companies that person reliable gross sources and are precise debased risk.
However, the REIT has expanded successful respective ways that diversify its holdings. It has tenants successful industrials and gaming, and it has a ample beingness successful Europe. In fact, Asda and Sainsbury's are among its apical 20 tenants, and U.K. properties marque up 14.3% of the total.
Realty Income grows done purchasing much properties and acquiring different REITs. It has much than 15,000 properties today, and it sees a $14 trillion addressable marketplace successful caller properties. That includes 91% successful what it calls "necessity retail," arsenic good arsenic immoderate of its newer industries, including information centers. It sourced $121 cardinal successful measurement past twelvemonth and invested $6.2 billion, a 5% selectivity rate, and it has capable and flexible funding.
And finishes with the dividend
That's a prelude to however it funds its apical dividend. Realty Income has each the features astir passive income investors privation successful a dividend -- the dividend is increasing and reliable, and it yields 5% astatine the existent price.
An added perk is that it pays the dividend monthly. In fact, it has paid the dividend each period without neglect for the past 669 months, oregon much than 55 years. That's astir arsenic reliable arsenic it gets. It has besides raised it for the past 114 quarters.
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