Why Realty Income (O) Deserves a Spot in Your Dividend Stock Portfolio

Realty Income Corporation (NYSE:O) is included among the Best Retirement Stocks for a Dividend Stock Portfolio.

Realty Income Corporation (NYSE:O) is an American real estate investment trust company. It is well-positioned to keep delivering a consistent and gradually increasing dividend. The company holds a broad mix of commercial properties— including retail, industrial, and gaming facilities— backed by long-term triple net (NNN) leases. These agreements place the responsibility of operating expenses, such as maintenance, taxes, and insurance, on the tenants rather than the landlord.

This structure provides Realty Income Corporation (NYSE:O) with highly predictable rental income, of which about 75% is distributed as dividends. The remaining cash flow is reinvested into acquiring more income-producing properties. On top of that, the company maintains one of the strongest balance sheets in the REIT industry, giving it added flexibility to fund new acquisitions. For the current year, the company plans to invest around $5 billion in additional properties.

On September 9, Realty Income Corporation (NYSE:O) declared a 0.2% hike in its monthly dividend to $0.2695 per share. This was the company’s 132nd dividend increase since the company went public in 1994. With a dividend yield of 5.47%, as of September 21, O is among the best stocks for a dividend stock portfolio.

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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Disclosure: None.