Investors seeking steady income regardless of where the market moves could consider investing in high-quality monthly dividend stocks. Realty Income (NYSE:O), operating as a Real Estate Investment Trust (REIT), is one company that investors can easily rely upon to boost their monthly income.
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Here’s Why Realty Income is a Dependable Income Stock
Realty Income calls itself a “Monthly Dividend Company” and is part of the S&P 500 Dividend Aristocrats Index (which includes companies with a dividend growth history of at least 25 consecutive years). It has been consistently paying dividends since becoming a public company in 1994.
What stands out is Realty Income’s stellar dividend growth history. In September, Realty Income announced its 100th consecutive quarterly dividend increase. Moreover, in total, it has raised its dividend for 117 quarters.
The increase in its real estate properties (which stood at 11,700 at the end of Q3) and high occupancy rate of (98.9%) support its cash flows and drive its dividend payments. Further, its diversified and high-quality tenant base and long-term leases add stability and support its growth. Also, its strong balance sheet, access to low-cost capital, and growing cash flow support the bullish outlook.
Is Realty Income a Buy, Sell, or Hold?
On TipRanks, Realty Income stock has a Moderate Buy consensus rating based on seven Buy and three Hold recommendations. Moreover, these analysts’ average price target of $69.95 implies 10.6% upside potential.
TipRanks’ data indicates that hedge funds are bullish about Realty Income stock and bought 703.9K shares last quarter. Also, the stock has a nine out of 10 Smart Score on TipRanks, indicating a positive outlook.
Bottom Line
Realty Income’s solid dividend payment and growth history make it a dependable income stock. Further, its growing cash flows, supported by long-term leases and high occupancy, indicate that this REIT will continue to enhance its shareholders’ returns through higher dividend payments.
Realty Income pays a monthly dividend of $0.248 per share, translating into an attractive yield of 4.7%.
