I'm on a mission to reach financial independence through passive income. Investing in high-yielding dividend stocks is a core piece of my strategy, so I tend to buy several dividend stocks each month as I have cash to invest. However, if I had to limit myself to just one high-yield dividend stock this July, Realty Income (O -0.07%) would be it. Here's why I think it's the quintessential income investment. Built to deliver dependable monthly dividendsRealty Income isn't like other real estate investment trus ...

Generating passive income is a core aspect of my investment strategy. It provides me with additional cash flow that I can reinvest to grow my wealth and passive income. Once my passive income exceeds my living expenses, I'll be financially independent. Investing in high-yielding dividend growth stocks is the foundation of my passive income strategy. Their higher yields enable me to generate more income from every dollar I invest compared to lower-yielding alternatives, while their rising payouts steadily pr ...

Core Viewpoint - Investing in real estate can be accessible to individuals without significant wealth, particularly through dividend stocks like Realty Income, which offers monthly dividends to shareholders [1][2]. Company Overview - Realty Income is recognized as "The Monthly Dividend Company" and is a leading real estate investment trust (REIT) that provides monthly dividends [2][5]. - The company has a diverse portfolio consisting of 15,627 properties across the United States and seven other countries, focusing on tenants in consumer-facing, recession-proof businesses [5][6]. Financial Performance - Realty Income has a strong track record, having paid and raised its dividend for 32 consecutive years, including during significant economic downturns such as the Great Recession and the COVID-19 pandemic [6]. - The company's dividend payout ratio is 75% of its 2025 funds from operations (FFO) guidance, indicating a stable financial performance [6]. Investment Strategy - To generate $100 in monthly dividends from Realty Income, an investor would need to purchase approximately 373 shares, requiring an investment of around $20,701 at the current share price, given a dividend yield of 5.8% [7]. - Investors can start with any amount and reinvest dividends to accumulate shares over time, enhancing their dividend income [8]. Tax Considerations - Dividends from Realty Income are classified as nonqualified dividends, which are taxed as ordinary income at the investor's applicable tax bracket [10]. - It is advisable for investors to consider holding Realty Income or other REITs in tax-advantaged accounts to optimize their investment strategy [11].