This Is My Favorite Dividend Stock (by Far)

• Realty Income pays a monthly dividend.

• The REIT routinely raises its payment.

• It has a precocious output backed by a rock-solid fiscal profile.

• 10 stocks we similar amended than Realty Income ›

John D. Rockefeller erstwhile said, "Do you cognize the lone happening that gives maine pleasure? It's to spot my dividends coming in." While I personally find galore different things much pleasurable than seeing dividend payments deposited successful my brokerage account, I hold that there's thing precise satisfying astir getting paid for enactment idiosyncratic other did.

Given my fondness for dividend stocks, I ain galore of them. However, my favourite by acold is Realty Income (NYSE: O). Here's why.

Realty Income is simply a dividend lover's imagination stock. One happening that sets the existent property concern spot (REIT) isolated from others is its dividend outgo frequency. While astir companies wage dividends quarterly, Realty Income is simply a monthly dividend stock. That outgo frequence enables it to delight dividend investors each azygous month.

The REIT besides stands retired for however often it increases its dividend. While galore companies strive to summation their payouts annually, Realty Income has raised its outgo for 112 consecutive quarters. It has hiked its dividend by arsenic overmuch arsenic six times successful immoderate years. Overall, Realty Income has raised its dividend 132 times since its nationalist marketplace listing successful 1994 (including 5 times this year), increasing it astatine a 4.2% compound yearly rate.

Another large facet of Realty Income's dividend is its yield. It's presently astatine 5.7%, which is respective times higher than the S&P 500's output (1.2%). That higher output enables maine to make a batch much income from each dollar I put successful the REIT compared to lower-yielding options.

Realty Income backs its high-yielding payout with a high-quality existent property portfolio and rock-solid equilibrium sheet. Meanwhile, its beardown fiscal illustration puts it successful an fantabulous presumption to proceed increasing its portfolio and dividend.

That's why, of each my holdings, Realty Income is my favorite. It provides maine with reliable and increasing dividend income, giving maine existent bid of caput arsenic an income investor.

Before you bargain banal successful Realty Income, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Realty Income wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.