Can Realty Income Corporation (O) Deliver Consistent Passive Income in 2025?

Realty Income Corporation (NYSE:O) is included among the 10 Best Passive Income Stocks to Buy Now.

Realty Income Corporation (NYSE:O) is an American real estate investment trust company. It is among the best dividend stocks for passive income as the company distributes its payouts monthly. On July 8, the company declared a monthly dividend of $0.269 per share, which fell in line with its previous dividend. Overall, it has raised its payouts 131 times since its inception three decades ago. Moreover, the company has paid 661 consecutive monthly dividends to shareholders. The stock has a dividend yield of 5.67%, as of July 10.

Realty Income Corporation (NYSE:O) generates stable and reliable rental income from a diverse portfolio that includes retail, industrial, gaming, and data center properties. Over 90% of its rental revenue comes from sectors that tend to be resilient during economic downturns or less impacted by the rise of e-commerce. The company typically leases its properties to financially sound tenants on a net lease basis through long-term contracts that often include annual rent escalations, helping to drive steady income growth.

As of mid-2025, Realty Income Corporation (NYSE:O) maintains a prudent dividend payout ratio below 75% and has one of the strongest balance sheets in the REIT sector, with a leverage ratio of 5.4x. This solid financial footing enables the company to continue expanding its portfolio with income-producing assets.

While we acknowledge the potential of O as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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