Most of the income investors are inclined towards investing in stocks that provide them with consistent income year after year. These stocks are the dividend payers that keep increasing their payouts on a constant basis helping the investors to build their own portfolio that produces income which can rise along the rising costs of living.
Some dividend stocks pay investors every few months, while others pay on a monthly basis making budgeting a bit easier. For investors who are interested in the monthly dividend stocks, below mentioned is the stock which has been very consistent in paying dividend for over the past few decades.
Realty Income (NYSE:O): Whenever there is a discussion about monthly dividend stocks, one cannot jump the Realty Income stocks. The company is a real estate investment trust (REIT) which owns several real estate properties across various locations in the U.S and the income generated from these various holdings is paid to the investors in the form of dividend every month.
The company has an overall dividend yield of 4.6% and has been paying dividends to its shareholders for the past 576 months. That’s a whopping 48 years. On top of that, for investors who want to see their money grow, the company has increased its payouts for a record 83 consecutive quarters.
For people who are wondering how Realty Income can make this happen, the company boasts of a strong portfolio of 5,400 real estate properties and has agreements with more than 250 commercial tenants in 48 different industries, giving the company the required diversification to generate revenue.
Also, the company gives more importance to high profile tenants that have stable business models, thus ensuring a reliable income from them which in turn is paid to its shareholders in the form of dividends.
This business model of Realty Income has worked perfectly thus far. However, there are investors who fear the decline in the popularity real estate in the long run. Here one has to remember that; Realty Income has decades of experience in this sector, and has come through some toughest of the times, but never ceased to pay dividend to its investors.
Shares of Realty Income are now trading at $58.85 after recording an increase of 1.12% at the close of the session on Friday.