Realty Income Corporation: A Top Monthly Dividend Stock With Over 5% Yield

Realty Income Corporation (O), also known as "The Monthly Dividend Company," has been a favorite among income investors for its consistent and growing monthly dividends. With a current yield of over 5%, O offers an attractive income opportunity for investors seeking stable and increasing cash flows. In this article, we will explore the key factors that make Realty Income Corporation a top choice for monthly dividend stocks.



A Robust Portfolio of Commercial Real Estate
Realty Income Corporation boasts a diversified portfolio of over 15,450 properties, spread across various sectors and geographical regions. The company's portfolio consists of retail, industrial, and office properties, with a focus on single-tenant properties. This diversification helps mitigate risk and ensures stable cash flows, as no single property or sector accounts for a significant portion of the company's revenue.

Long-term Leases and High-quality Tenants
Realty Income Corporation's tenants typically sign long-term leases, providing a stable and predictable income stream. As of December 31, 2016, the company had an average lease term of approximately 9.8 years. The company's tenants are primarily investment-grade or investment-grade-equivalent companies, which helps ensure timely rent payments and reduces the risk of defaults.

Conservative Capital Structure and Strong Financial Performance
Realty Income Corporation maintains a conservative capital structure, with a low debt-to-equity ratio. This prudent approach to financing helps protect the company's dividend payments during economic downturns. The company's strong financial performance, with revenue of $5.01 billion and net income of $866.69 million in the last 12 months, further supports its ability to maintain and increase its dividend payouts.

Consistent Dividend Growth and High Dividend Coverage
Realty Income Corporation has a history of increasing its monthly dividends, with 29 consecutive years of dividend growth. The company's dividend cover is approximately 0.5, indicating that the company's earnings are more than sufficient to support its dividend payments. This high dividend coverage ensures that Realty Income Corporation can continue to pay and grow its dividends, even in the face of economic uncertainty.



Expansion into Europe and Alternative Revenue Streams
Realty Income Corporation is expanding its presence in Europe, with properties in the U.K. and six other countries. Additionally, the company is exploring alternative revenue streams, such as data centers and gaming, to further diversify its income sources. These strategic initiatives aim to improve the company's margins and provide stable, alternative earnings and revenue streams.

Realty Income Corporation: A Top Monthly Dividend Stock
Realty Income Corporation's diversified portfolio, long-term leases, conservative capital structure, strong financial performance, consistent dividend growth, and high dividend coverage make it an attractive choice for income investors seeking stable and increasing cash flows. The company's expansion into Europe and alternative revenue streams further enhance its long-term prospects. With a current yield of over 5%, Realty Income Corporation offers an attractive income opportunity for investors looking to generate steady and growing dividends.



In conclusion, Realty Income Corporation's robust portfolio, long-term leases, conservative capital structure, strong financial performance, consistent dividend growth, and high dividend coverage make it a top choice for monthly dividend stocks. The company's expansion into Europe and alternative revenue streams further enhance its long-term prospects, making it an attractive investment for income-focused investors.