1 Ultra-High-Yield Dividend Stock to Buy Like There's No Tomorrow During the Tariff Tizzy

Core Viewpoint - Realty Income is positioned as a reliable investment option for dividend-seeking investors, especially during periods of economic uncertainty and market volatility [1][2]. Company Overview - Realty Income operates as a retail real estate investment trust (REIT), with approximately 20% of its portfolio in convenience and grocery stores, and another 15% in drug stores, auto services, and dollar stores [3]. - Major tenants include Dollar General, Walgreens, Dollar Tree, FedEx, CVS, Home Depot, and Walmart, contributing to a median occupancy rate of 98.2% from 2000 to 2024, significantly higher than the S&P 500 REITs median of 94.2% [4]. Economic Resilience - The company has maintained high occupancy rates due to its focus on thrift and middle-market retailers, which are considered recession-proof. During the Great Recession (2007-2009) and the COVID-19 recession (2020), occupancy rates remained between 97% and 98% [5]. - Realty Income's business model is relatively insulated from economic turbulence, supported by its long-term commitment to rewarding shareholders through consistent dividend payments [11]. Dividend Safety and Growth - Realty Income pays dividends monthly, which is appealing for passive income investors. The company has a strong track record of increasing dividends, with 110 consecutive quarters of dividend raises [10]. - The company's ability to generate consistent funds from operations (FFO) has been bolstered by strategic acquisitions, including expansions into gaming and data centers, which are expected to thrive amid the AI revolution [10][15]. Valuation and Investment Potential - Realty Income's current price-to-FFO ratio stands at 14.3, near its lowest levels in nearly a decade, suggesting an attractive valuation for potential investors [12]. - Concerns regarding the impact of tariffs on inflation and economic growth, as well as doubts about the company's growth strategy in non-core markets, are viewed as short-sighted given Realty Income's historical resilience [14][15]. - The company is considered a bargain at present, with potential for long-term investment while providing reliable dividend income [16].