If you've been on the lookout for companies that dole out monthly dividends, chances are Realty Income (NYSE: O) has popped up on your radar. It's a premier real estate investment trust (REIT) with a portfolio of over 15,450 commercial real estate properties and an occupancy rate of 98.6%, according to the latest reports.
All told, it's been a bit of a sticky situation for the real estate sector, as they've felt the sting of interest-rate headwinds over the past couple of years. But the good news is it hasn't thrown a wrench in the REIT's dividend-growth streak.
Back in June, Realty Income announced it was raising its monthly dividend from $0.2625 per share to $0.263 per share to stockholders of record as of July 1, 2024, bringing the annualized dividend amount to $3.156 per share. At the current stock price, this makes the dividend yield attractive to income-seeking investors.
How to earn $1,000 per year in dividend income
If interest rates start to come down, there could be better days ahead for Realty Income. Do your research and due diligence, and then consider beefing up this dividend machine if it jumps out as a winner. To determine how much you'd need to invest, start with the amount of income you want to earn, which in this case is $1,000. Then, divide this amount by the stock's dividend yield.
As of this writing, Realty Income's current dividend yield is roughly 5.5%. If you take $1,000 in dividend income and divide it by 5.5%, the total investment comes out to $18,182 if you buy shares right now.
The cherry on top is that Realty Income has been dishing out monthly dividends since 1994, making the income pretty reliable. It has declared 649 consecutive monthly dividends to investors and has increased its dividend for 29 years in a row.
Even if you don't invest additional dollars into the stock, your dividend income is likely to rise over time if Realty Income keeps up this impressive run.
Should you invest $1,000 in Realty Income right now?
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Charlene Rhinehart 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.
