This Consistent Dividend Stock Shows Why It Belongs in Your Portfolio

Core Insights - Realty Income is recognized for its unmatched consistency as a dividend stock, providing reliable rental income across economic cycles, which supports its ability to pay dependable dividends and expand its portfolio [1][2] Financial Performance - In Q2, Realty Income generated $947.5 million, or $1.05 per share, of adjusted funds from operations (FFO), a slight decrease from $921.1 million, or $1.06 per share, in the same period last year due to an increase in outstanding shares [4] - The company reported nearly $1.2 billion in same-store rental revenues, slightly higher than last year, with contractual rental increases offsetting lease expirations [5] Investment Strategy - Realty Income invested $1.2 billion in new properties at a strong 7.2% weighted average cash yield, with 76% of investments in Europe and the remainder in the U.S., diversifying across retail (46.6%), industrial (33%), and other properties (20.4%) [6][10] - The company expects to invest $5 billion this year, a $1 billion increase from its initial guidance, driven by a robust pipeline of new investment opportunities [9][8] Growth Outlook - Realty Income raised its 2025 guidance for adjusted FFO to between $4.24 and $4.28 per share, reflecting a roughly 2% increase from last year's level [7] - The company sourced $43 billion of potential investment opportunities during Q2, the highest in its history, but was selective, closing only 2.7% of the sourced volume [11] Dividend Policy - Realty Income has raised its monthly dividend four times this year, increasing payments by 3.7% over the past year, with a comfortable payout ratio of 76.8% at the end of Q2 [12] - The current dividend yield stands at 5.7%, making it a top-tier choice for investors seeking a blend of income and steady growth [13]