Here's How Many Shares of Realty Income Stock You Should Own to Get $500 in Yearly Dividends

Core Insights - Realty Income has established itself as a significant cash generator for long-term investors, known for its consistent monthly dividend payments since 1994 [1] - The current valuation and dividend yield of Realty Income are favorable for new investors, with a relatively low investment required to generate substantial annual income [1][3] Dividend Generation - Realty Income pays a monthly dividend of $0.2685 per share, translating to an annual payout of just over $3.22 per share, resulting in a yield of just under 5.6% [3] - To achieve $500 in annual dividend income, an investor needs to purchase 156 shares, requiring an investment of approximately $8,950 at the current share price of $57.35 [3] Revenue Stability - The company generates revenue from over 15,600 net lease properties, where tenants are responsible for taxes, insurance, and maintenance, leading to stable cash flows [4] - Nearly 99% of these properties are leased and occupied by well-known companies such as Home Depot, Dollar Tree, and Tractor Supply, which reduces the risk of tenant defaults due to their stability and reliance on foot traffic [4] Dividend Growth Potential - Realty Income has increased its dividend four times over the past year, with the payout rising from $0.2630 per share to $0.2685 per share, reflecting a 2% increase [5] - Although a 2% increase may seem modest, rising lease rates and an expanding portfolio are expected to drive future dividend growth and enhance stock price appreciation, benefiting shareholders over time [5]