Key Points
Realty Income's mission is to pay a dependable and growing monthly dividend.
The REIT backs its high-yielding payout with a rock-solid portfolio and financial profile.
It has a long history of increasing its dividend, and that trend should continue.
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My top financial goal for this year is to grow my passive income. I want to become more financially independent. For me, that means generating enough passive income to cover my basic living expenses.
Realty Income (NYSE: O) is an income juggernaut. That's why I plan to load up on the real estate investment trust (REIT) this year.
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Part of Realty Income's stated mission is to invest in places that "deliver dependable monthly dividends that increase over time." The REIT has certainly delivered on that mission over the years. It has declared 667 consecutive monthly dividends since its formation more than half a century ago. Meanwhile, it has raised its payment 133 times since its public market listing in 1994, -- including for the last 113 quarters in a row -- growing it at a 4.2% compound annual rate during that time frame.
The REIT currently has a 5.1% dividend yield, which is several times higher than the S&P 500 (1.2% yield). That high-yielding payout is on rock-solid ground. Realty Income's diversified portfolio generates very stable rental income backed by long-term net leases that require tenants to cover all property operating costs. It also has a very strong financial profile, including one of the 10 best balance sheets in the sector. That gives it the flexibility to continue growing its portfolio of income-producing real estate.
I fully expect Realty Income to continue growing its high-yielding dividend over the coming decades. That's why I plan to load up on even more shares of this quintessential real estate passive income stock in 2026.
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Matt DiLallo has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
