Investing $50,000 in This Ultra-High-Yield Dividend Stock Could Generate $2,865 in Annual Passive Income

Core Viewpoint - Realty Income is presented as a strong investment opportunity for income-seeking investors, particularly due to its high dividend yield and reliable income generation capabilities [2][7]. Company Overview - Realty Income is a real estate investment trust (REIT) that owns 15,627 commercial properties leased to 1,598 clients, including major companies like Dollar General, FedEx, Home Depot, and Walmart [4]. - It is the seventh-largest REIT globally, with a diversified tenant base across 91 industries, and approximately 91% of its rent is insulated from economic downturns and e-commerce competition [5]. Financial Performance - Realty Income has a 56-year operational history, delivering positive total operational returns for 29 consecutive years, with a compound annual total return of 13.6% since its NYSE listing in 1994 [6]. - The current forward dividend yield is 5.73%, allowing a $50,000 investment to generate $2,865 in annual income [7]. Dividend Reliability - Realty Income has paid dividends for 659 months and has increased its dividend for 30 consecutive years, with a compound annual growth rate of 4.3% [9]. - The dividend payout ratio is nearly 288%, but the adjusted funds from operations (AFFO) indicate a comfortable level of 75% used for dividend funding in Q1 2025, suggesting flexibility for future payments and growth [10]. Growth Prospects - The company has identified around $23 billion in sourced acquisition opportunities in Q1 2025, indicating solid growth potential compared to $43 billion in 2024 [11]. - Realty Income has significant growth potential in Europe, with an estimated total addressable net lease market of $8.5 trillion and limited competition, as well as a $5.5 trillion market in the U.S. with emerging opportunities in data centers and gaming [12].