Realty Income has increased its monthly dividend payment 133 times since its public market listing in 1994.
The REIT pays a very bankable dividend.
It should have no trouble continuing to grow its high-yielding payout in the future.
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Realty Income (NYSE: O) is one of the most reliable dividend stocks around. The real estate investment trust (REIT) has declared 666 consecutive monthly dividends throughout its history.
Dividend growth has been the company’s calling card over the years. It has now raised its monthly dividend payment 133 times since its public market listing in 1994. That steady upward trajectory in the dividend payment will undoubtedly continue in the coming years.
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Realty Income has a clear mission. The REIT aims to invest in properties that can deliver dependable monthly dividends that increase over time. Its multi-decade track record of dividend growth shows that it has stayed on mission:
Image source: Realty Income.
As the chart illustrates, Realty Income has increased its monthly dividend 133 times over the past three decades, including raising it for 113 quarters in a row. No other company comes close to that level of routine quarterly raises, since most dividend growers deliver annual increases.
Realty Income is raising its monthly dividend payment to $0.27 per share, pushing its annualized level to $3.24. It can easily afford that higher dividend level.
The REIT is on track to generate between $4.25 and $4.27 per share of adjusted funds from operations (FFO) this year. That puts its dividend payout ratio at around 76% of its adjusted FFO, a comfortable level for a REIT. The company is on track to produce $843.5 million of adjusted free cash flow after paying dividends this year, providing it with extra cash to invest in new income-generating properties.
The landlord produces very stable cash flow. Realty Income has a well-diversified portfolio of retail, industrial, gaming, and other properties secured by…
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