Investors with a lot of money to spend have taken a bullish stance on Realty Income (NYSE:O).And retail traders should know.We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with O, it often means somebody knows something is about to happen.So how do we know what these investors just did? Today, Benzinga's options scanner spotted 8 ...

Investing in real estate is one of the many ways to generate passive income. Among the most passive real estate investments is buying shares of a real estate investment trust (REIT). A few top REITs pay monthly dividends, enabling you to generate recurring cash flow to help cover your routine expenses. Here's how much you'd need to invest in three top monthly dividend stocks to produce over $250 of passive dividend income each month: Where to invest $1,000 right now? Our analyst team just revealed what t ...

Core Viewpoint - Realty Income is highlighted as an ideal investment for generating steady passive income through its high-yielding monthly dividend, which has a long history of consistent growth [2][6]. Company Overview - Realty Income is one of the largest real estate investment trusts (REITs) globally, owning over 15,600 properties across the U.S. and Europe, with a diversified portfolio that includes retail, industrial, and gaming properties [3][7]. - The company has a strong financial foundation, with a current dividend yield of 5.4% and a conservative payout ratio of approximately 75% of its adjusted funds from operations (FFO) [4][6]. Dividend History - Realty Income has a remarkable track record of paying 663 consecutive monthly dividends and has raised its dividend 132 times since its public listing in 1994, achieving a compound annual growth rate of 4.2% over more than three decades [6]. Growth Potential - The company currently owns about $61 billion in real estate, representing a small portion of the estimated $14 trillion opportunity in global net-lease properties, indicating significant room for future growth [7]. - Realty Income is selective in its investments, having sourced $43 billion in potential deals in the second quarter but only closing $1.2 billion, reflecting a disciplined investment approach [8]. Investment Strategy - The company has expanded its investment verticals, recently entering U.S. gaming properties and data centers, and has launched a credit investment platform to enhance growth potential [9]. - Realty Income is expected to invest $5 billion annually, which will contribute to increasing its FFO per share and support ongoing dividend increases [10]. Passive Income Generation - With a current dividend yield of around 5.4%, an investment of $1,000 in Realty Income can generate approximately $54 in annual passive income, with expectations for steady growth in dividend payments [11].

Core Viewpoint - Realty Income is positioned to continue increasing its dividends due to its strong performance and growth potential in the REIT sector [1][12]. Financial Performance - Realty Income generated $2.11 per share of adjusted funds from operations (FFO) in the first half of 2025, with same-store rent growth averaging 1.2% and occupancy at 98.6% [4]. - The company has raised its dividend four times this year, totaling a 3.7% increase over the past 12 months [5]. - Realty Income expects its full-year adjusted FFO to be between $4.24 and $4.28 per share, up from an initial forecast of $4.22 to $4.28 [6]. Stock Valuation - Realty Income's stock price has declined 9% from its peak, trading below $59 per share, which values the REIT at less than 14 times its adjusted FFO, compared to an average of 18 times for other S&P 500 REITs [7]. Growth Opportunities - Realty Income owns over 15,600 properties across nine countries, valued at approximately $61 billion, with a diverse portfolio including retail (79.9%), industrial (14.6%), gaming (3.1%), and other properties (2.4%) [9]. - The company has expanded into new investment verticals, including the U.K. and Europe, tapping into an $8.5 trillion investment opportunity, with Europe accounting for 76% of its investment volume in the second quarter [10]. - New verticals in the U.S., such as casino properties and data centers, have expanded Realty Income's total addressable market by an estimated $900 billion, contributing to a combined investment opportunity of $14 trillion [11]. Financial Flexibility - Realty Income boasts one of the best balance sheets in the REIT sector, providing financial flexibility for acquisitions, and has launched a private capital fund in the U.S. to enhance access to acquisition capital [12]. Investment Perspective - Realty Income is considered a top-tier real estate dividend stock, making it an appealing option for long-term dividend income, especially with its current share price decline [13].

Core Insights - Investing in real estate investment trusts (REITs) is an effective strategy for generating consistent dividend income due to their dependable rental income and capital reinvestment for portfolio expansion [1] Group 1: EPR Properties - EPR Properties focuses on experiential real estate, leasing properties under long-term net leases that require tenants to cover all operating costs, providing stable rental income [4] - The REIT expects to generate between $5.00 and $5.16 per share of funds from operations (FFO) this year, covering its monthly dividend payments of $0.295 per share, resulting in a dividend yield of over 6% [5][6] - EPR Properties reinvests excess cash into additional experiential properties, with plans for $148 million in development and redevelopment projects over the next two years, aiming for 3%-4% annual FFO per share growth [6] Group 2: Realty Income - Realty Income owns a diversified portfolio leased to leading companies, generating durable rental income that supports its monthly dividend [7] - The REIT has declared 661 consecutive monthly dividends and raised its payment 131 times since its public listing in 1994, currently yielding more than 5.5% [8] - Realty Income maintains a strong balance sheet and substantial free cash flow, with a market opportunity of over $14 trillion in core markets suitable for net leases [9] Group 3: Healthpeak Properties - Healthpeak Properties holds a diversified portfolio of healthcare real estate, benefiting from steady demand and producing consistent rental income, with a dividend yield of nearly 6.5% [10] - The existing portfolio is expected to grow rental income by around 3% per year due to contractual rental escalations, with potential for higher rents as long-term leases expire [11] - Healthpeak's strong balance sheet and excess cash flow provide flexibility for new investments, including acquisitions and development projects, supporting further dividend growth [12] Group 4: Investment Summary - EPR Properties, Realty Income, and Healthpeak Properties are identified as top REITs for reliable rental income and high-yielding monthly dividends, with strong financial positions enabling continued investments for income and dividend growth [13]