The Secret to Passive Income: Investing in Realty Income for Steady Dividends

Saturday, 27 April 2024, 08:11

Realty Income, a leading real estate investment trust (REIT), offers a reliable income stream through its portfolio of single-tenant properties secured by net leases. With a history of consistent dividend payments and a focus on long-term growth, this dividend stock presents an opportunity for investors seeking passive income. By delving into the company's financial profile and growth prospects, it becomes evident that Realty Income is a prime choice for those looking to generate passive income in the real estate sector.
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The Secret to Passive Income: Investing in Realty Income for Steady Dividends

A Bankable Income Stream

Realty Income has paid 646 consecutive monthly dividends since its founding several decades ago. It went public in 1994 and has increased its dividend 124 times since then, including for the last 106 straight quarters. The REIT has grown its dividend at a 4.3% compound annual rate since its public listing roughly 30 years ago.

More Growth Ahead

Realty Income's dividend growth isn't likely to stop anytime soon. The REIT expects to deliver 4% to 5% annual adjusted FFO per share growth over the long term, roughly in line with its historical average. It expects rent growth and new investments to steadily drive its cash flow higher.

As Passive as It Gets

Realty Income's current dividend yield is around 6%. Every $1,000 invested in its stock would produce about $60 of annual dividend income. The more you invest, the more passive income you'll collect, making it an easy way to generate truly passive income.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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