The Smartest Dividend Stock to Buy With $100 Right Now

Core Viewpoint - Realty Income is highlighted as a reliable dividend stock with a yield of 5.5%, which is one percentage point higher than the average for real estate stocks, and it has a consistent history of dividend payments [11]. Company Overview - Realty Income operates a vast portfolio, leasing over 15,600 properties across the U.S., U.K., and Europe to more than 1,600 clients, ensuring a diversified and stable income stream [6]. - The company boasts an occupancy rate of over 98%, with tenants spanning more than 90 industries, which mitigates risks associated with industry-specific downturns [6]. Sector Breakdown - The company's annualized contractual rent is distributed across various sectors, including: - Grocery stores: 10.7% - Convenience stores: 9.8% - Home improvement: 6.4% - Dollar stores: 6.2% - Fast-food restaurants: 4.9% - Drug stores: 4.6% - Automotive service: 4.3% [7]. Investment Characteristics - Realty Income is classified as a Real Estate Investment Trust (REIT), which allows it to avoid federal corporate income tax by distributing at least 90% of its profits to shareholders, resulting in above-average dividends [10]. - The company has issued its 662nd consecutive monthly dividend and has increased its dividend every quarter for over 27 years, showcasing its commitment to consistent returns [11]. Financial Performance - In the second quarter, Realty Income reported revenue of $1.41 billion, an increase from $1.34 billion year-over-year, although net income decreased to $196.9 million from $256.6 million [12]. - The stock has appreciated by 10% year-to-date, outperforming the S&P 500's return of 9%, and is projected to provide a total return of 12.5% in 2025 [12].