Dividend REITs — Realty Income (O)
Dividend yield: 5.2%
I’ll start with a REIT that is so perfectly tailor-made for a retirement portfolio, I consider it irresponsible not to own it: Realty Income (O). Realty income is a “triple-net” retail REIT, meaning that its tenants are responsible for paying all taxes, insurance and maintenance. Realty Income only responsibility is to collect the rent — and to acquire new properties, of course.
Realty Income is known as the Monthly Dividend Company, and for good reason. It has paid 524 uninterrupted monthly dividends and has raised its dividend 75 times since 1994.
There is nothing to dislike about Realty Income as a retirement REIT. At current prices, it yields an attractive 5.2%. And its track record has proven it to be a reliable payer with a long history of keeping pace with inflation. The fact that the REIT pays its dividend monthly rather than quarterly is a nice bonus as well, as most of our living expenses in retirement will come on a monthly schedule.