Best Monthly Dividend Stocks - Realty Income
Dividend Yield: 4.9%
Realty Income paid its first dividend in 1970, before it was publicly traded, and hasn’t slowed down since. It’s paid 525 consecutive monthly dividends and raised its dividend 75 times — and in 64 consecutive quarters. That definitely makes Realty Income not just one of the best monthly income stocks, but one of the best dividend stocks period.
Since 1994, when Realty Income started trading on the NYSE, the REIT’s annualized dividend has risen from 90 cents per share to $2.19 per share. At its current price, that amounts to a dividend yield of 4.9%.
Realty Income is one of those rare monthly dividend stocks that I believe you can truly buy, put in a drawer, and forget about for years. As a conservative, triple-net REIT, it’s what I would call an “Armageddon-proof” investment. It owns a diversified portfolio of 3,800 properties across 49 states that are rented under long-term leases primarily to high-quality tenants.
The “typical” property for Realty Income would be your local Walgreens (WAG) or CVS (CVS) pharmacy — a high-traffic, highly visible location that you pass on your daily commute. And under a triple-net lease, it is the tenant’s responsibility to take care of the property and to pay the taxes and expenses. The landlord’s only role is to collect the rent check. Not bad work, if you can find it.
I listed Realty Income as a stock you can “buy and hold forever,” and I would reiterate that recommendation today.