Monthly dividends can be useful for investors who want a steady stream of income. Rather than waiting for a quarterly payment, they get cash coming in throughout the year. That can make a difference for people who rely on their investments for regular income or prefer to reinvest dividends as soon as they receive them.
The appeal is even greater when the company behind the payout has a long history of keeping its dividend intact and raising it over time. Realty Income Corporation (NYSE:O) is a good example. The real estate investment trust has declared 673 consecutive monthly dividends, with the streak going back to 1969.
It has also raised its dividend for 115 consecutive quarters. That kind of record is one reason Realty Income has become a familiar name among income-focused investors. Realty Income currently pays $0.271 per share each month, or $3.252 on an annualized basis.
At around $63 per share, that puts the dividend yield a little above 5%. That is a meaningful yield for investors looking for income, especially when the payout comes from a company with a large and diversified property portfolio. Even if the stock does not produce strong price gains, the dividend gives shareholders another source of return.
Realty Income Corporation (NYSE:O) owns more than 15,500 properties across 92 industries, with most of its portfolio operating under triple-net leases. Under these agreements, tenants generally pay property taxes, insurance, and maintenance costs on top of their rent. That helps Realty Income keep its rental income relatively predictable.
Occupancy was 98.8% at the end of the second quarter, which also shows that very little of the portfolio was sitting vacant. The dividend is not just supported by Realty Income's track record. The company's cash flow also gives investors some comfort.
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