How O (Realty Income Corporation) Works
Known as 'The Monthly Dividend Company,' Realty Income is an S&P 500 Dividend Aristocrat REIT owning over 15,000 commercial properties under long-term triple-net leases across the US and Europe.
Payout Schedule: Pays monthly dividends around the 15th of every month (ex-dividend around the end of the prior month).
Dividend Track Record: Realty Income has declared over 650 consecutive monthly dividends and increased its dividend for more than 30 consecutive years since its 1994 NYSE listing.
Strengths & What to Watch Out For (O)
✓ Strengths
- •Dependable monthly dividend schedule with 30+ years of consecutive annual dividend increases
- •Triple-net lease model shifts property taxes, insurance, and maintenance costs to commercial tenants
- •Eligible for the 20% Section 199A Qualified Business Income (QBI) deduction on ordinary REIT dividends
⚠ Common Mistakes & Risks
- •REIT dividends are generally taxed as ordinary income (not qualified dividends) in taxable accounts
- •Share price is sensitive to US Treasury yields and Federal Reserve interest rate cycles
- •Slower annual dividend growth rate (typically 3%–4%) due to its massive property portfolio scale