5 Reasons Income Investors Will Absolutely Love This High-Yield Dividend Stock

Core Viewpoint - Realty Income is highlighted as a top choice for income investors due to its high dividend yield, consistent dividend growth, monthly payments, stability, and growth opportunities. Group 1: High Yield - Realty Income offers a forward dividend yield exceeding 5.2%, which is attractive for income investors [2] - The high yield is supported by its status as a real estate investment trust (REIT), which must return at least 90% of income to shareholders to avoid federal income taxes [3] Group 2: Dividend Growth - Realty Income has a strong track record of increasing dividends for over 30 consecutive years, with a compound annual growth rate (CAGR) of 4.2% [5] - The REIT has raised its dividend 133 times since its NYSE listing in 1994, including 112 consecutive quarterly increases [6] Group 3: Payment Frequency - Realty Income pays dividends monthly, branded as "The Monthly Dividend Company," and has maintained this for 667 consecutive months [7] Group 4: Stability - The company has achieved 29 consecutive years of positive total operational returns, which combine adjusted funds from operations (FFO) per share growth and dividend yield [8] - Since its NYSE listing, Realty Income's shares have only declined more than the S&P 500 twice during significant market downturns, with a low beta of 0.5 [9] - The stability is attributed to its diversified portfolio of over 15,500 properties across 92 industries, ensuring steady free cash flow [10] Group 5: Growth Opportunities - Realty Income has generated a compound annual total return of 13.7% since its NYSE listing, outperforming the S&P 500 over the long term [12] - The company sees growth potential in Europe and private capital markets, with management believing these initiatives could enhance long-term earnings growth [14]