Monthly Payouts & Expanding Reach: Can Realty Income Deliver?

Realty Income’s O appeal has always been tied to its reliability, and that reputation remains intact. The REIT recently declared its 667th consecutive monthly dividend, underscoring a payout record that stretches back several decades. The current monthly dividend of 27 cents per share translates into an annualized payout of $3.24, keeping Realty Income firmly positioned as a core holding for investors who prioritize steady income over short-term excitement.

What makes the dividend story more compelling is its consistency over time. Realty Income has delivered 133 monthly dividend increases since its public listing and is included in the S&P 500 Dividend Aristocrats. These increases are typically small, but they reflect a disciplined approach to growth and cash flow management. Rather than chasing aggressive hikes, the company focuses on making sure the dividend is well-covered and sustainable through different economic cycles. Check Realty Income’s dividend history here. 

The foundation for that stability lies in the portfolio. As of the third quarter of 2025, Realty Income owned more than 15,500 properties spread across all 50 U.S. states, the U.K., and several European countries. Portfolio occupancy stood at about 98.7%, highlighting the strength of tenant demand and the defensive nature of many of its tenants, which are concentrated in non-discretionary retail and service categories.

Strategic growth has also taken center stage. A recently announced strategic partnership with GIC brings more than $1.5 billion of joint capital commitments focused on build-to-suit logistics assets leased to investment-grade-equivalent tenants. The alliance also includes Realty Income’s first foray into the Mexican market through a $200 million industrial portfolio in Mexico City and Guadalajara, pre-leased to Global Fortune 100 companies.

Beyond lease, Realty Income is selectively broadening its playbook. The $800 million preferred equity investment in CityCenter Las Vegas real estate assets reflects a move toward high-quality, income-producing assets that can complement the core portfolio. This transaction lifted Realty Income’s 2025 investment volume guidance above $6 billion. The REIT had invested approximately $1.4 billion at a 7.7% average initial cash yield during the third quarter, including $1 billion deployed in Europe. These steps show a company focused on expanding carefully while keeping its monthly payout promise front and center.

Dividend Appeal of Other Net Lease REITs

VICI Properties VICI continues to shine in the triple net lease REIT space with 6.6% annual dividend growth since 2018. 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 and retained the same rate in its December dividend announcement.

Agree Realty Corporation ADC mirrors this consistency, with 166 consecutive dividends paid and a 10-year CAGR of around 5%. Its 75% AFFO payout ratio reinforces reliable income, positioning Agree Realty alongside VICI Properties and other top net lease REITs in dividend stability. In October, Agree Realty declared a monthly cash dividend of 26.2 cents per share, representing a 2.3% month-over-month increase. The company retains the same monthly dividend subsequently.

O’s Price Performance, Valuation and Estimates

Shares of Realty Income have risen 4.6% over the past month, outperforming the industry’s growth of 2.7%. 

From a valuation standpoint, O trades at a forward 12-month price-to-FFO of 13.62, below the industry but ahead of its one-year median of 13.14. It carries a Value Score of D.

Over the past seven days, estimates for O’s 2025 FFO per share have remained unchanged, and estimates for 2026 have been tweaked northward.

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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