Monthly Payouts and Expanding Portfolio: Can Realty Income Deliver?

Realty Income O, widely recognized as the “Monthly Dividend Company,” remains a core holding for many income-focused investors due to its roughly 5.7% yield and long record of consistent payouts. The REIT’s third-quarter 2025 performance reinforced that reputation, supported by a large, diversified real estate platform that spans retail, industrial and international markets.

Its income reliability is anchored in more than three decades of consecutive annual dividend growth and more than 100 straight quarterly increases. Those metrics matter in a market where stability is scarce, and Realty Income’s dependable distribution cadence continues to be a differentiator. The company’s net-lease model further strengthens cash flow visibility because tenants cover most property-level costs, reducing earnings volatility.

The portfolio now exceeds 15,500 properties across the United States, the U.K. and continental Europe, leased to more than 1,600 clients operating in 92 industries. With a heavy tilt toward essential retail, low-price-point chains and service-based tenants, the company maintains broad diversification that helps limit exposure to any single operator or sector, which is an important factor supporting long-term dividend coverage. Check Realty Income’s dividend history here.

Growth, too, is central to the story. Realty Income has already invested approximately $3.9 billion in 2025, with Europe driving much of that activity, given its higher yields and less crowded competitive landscape. The REIT also remained disciplined in the United States, choosing selectivity over speed when underwriting new opportunities.

Operational trends continue to lean positive. Same-store rents increased 1.3%, and rent recapture on re-leasing reached 103.5%, underscoring healthy tenant demand. Alongside that, the REIT actively recycled capital through dispositions while keeping its balance sheet steady with net debt to EBITDA of 5.4X and more than $3.5 billion of liquidity, reinforcing its ability to sustain and gradually expand dividends.

Dividend Appeal of Other Net Lease REITs

VICI Properties VICI stands out in the triple-net lease REIT sector with 6.6% annual dividend growth since 2018, outperforming peers like Agree Realty and Realty Income. Its yield is supported by premium gaming and hospitality assets, and a 75% AFFO payout target provides a stable income stream. A strong balance sheet and a diversified portfolio underpin VICI Properties’ long-term dividend sustainability. In September, VICI Properties announced a 4% quarterly dividend hike to 45 cents per share.

Agree Realty Corporation ADC mirrors this consistency, with 165 consecutive dividends paid and a 10-year CAGR of around 6%. Its 75% AFFO payout ratio reinforces reliable income, positioning Agree Realty alongside VICI Properties and other top net lease REITs in dividend stability. Recently, Agree Realty declared a monthly cash dividend of 26.2 cents per share for November, representing a 3.6% year-over-year increase.

O’s Price Performance, Valuation and Estimates

Shares of Realty Income have risen 5.4% year to date against the industry’s decline of 7.9%.

From a valuation standpoint, O trades at a forward 12-month price-to-FFO of 12.79, below the industry as well as its one-year median of 14.44. It carries a Value Score of D.

While the Zacks Consensus Estimate for O’s 2025 FFO per share has been revised southward, the same for 2026 has been tweaked northward over the past 30 days.

At present, Realty Income carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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