This REIT Could Be One of the Best Companies to Own in 2026

Core Viewpoint - The current market conditions make real estate investment trusts (REITs) an attractive option for investors seeking income-generating investments, particularly with the U.S. government's focus on maintaining low interest rates and supporting the real estate market [2]. Group 1: Investment Opportunity - REITs are positioned to benefit from historically rising payouts, especially as fixed-income vehicles may not perform as well [2]. - Realty Income (NYSE: O) is highlighted as a strong candidate for investment in the REIT sector, known for its reliable income generation [2]. Group 2: Dividend Performance - Realty Income offers a 5.5% dividend yield, which is on the lower end compared to other REITs, but it is considered sustainable due to the company's focus on stable investments [4]. - The company has a remarkable history of increasing its dividend, having done so 133 times since going public 32 years ago, and is classified as a Dividend Aristocrat for its consistent annual increases over at least 25 years [6]. - Realty Income has maintained 666 consecutive monthly dividend payments, showcasing its reliability and commitment to returning value to shareholders [8]. Group 3: Market Position - In a market where interest rates on money market funds and other fixed-income options are declining, Realty Income has a proven track record of increasing its payouts, making it a compelling choice for income-focused investors [7]. - The company's portfolio is heavily weighted towards recession-resistant businesses, contributing to its ability to deliver consistent distribution hikes over 133 consecutive quarters [8].