10 Best Monthly Dividend Stocks to Buy Now

4. Realty Income Corporation (NYSE:O)

Number of Hedge Fund Holders: 23

Dividend Yield as of January 28: 5.28%

On January 20, Deutsche Bank analyst Omotayo Okusanya upgraded Realty Income Corporation (NYSE:O) to Buy from Hold and set a $69 price target. In a research note, he pointed out that REITs have lagged the S&P 500 in each of the past four years, and in nine of the last 11. Deutsche expects that trend to stretch into 2026.

For context, the firm projects a weighted average return of 10.3% across its REIT coverage. That compares with Deutsche’s equity strategy team forecast calling for the S&P 500 to reach 8,000, implying about 16.9% upside versus 2025. The broader backdrop matters here. Deutsche sees a tougher U.S. macro setup for REITs, with expectations for only one Federal Reserve rate cut in 2026, slower GDP growth, and higher unemployment. In that environment, REIT earnings growth is unlikely to keep pace with the broader market, which makes the sector less appealing for growth-focused investors.

Realty Income Corporation owns properties across the United States and eight European countries, including the United Kingdom. Retail assets account for roughly 80% of its rental income. That retail concentration can look risky at first glance. In practice, single-tenant retail properties tend to be fairly uniform. They are easier to buy, sell, and re-lease when needed. Beyond retail, the portfolio includes industrial properties, which generate about 15% of rents, along with more specialized assets such as vineyards and casinos.

Management understands the limits that come with Realty Income’s scale and has worked over time to keep growth options open. The casino investments show that approach in action. An initial property purchase was followed by additional deals in the same space, some structured more like loans. That shift has widened the range of assets the company can invest in, while still staying within its disciplined framework.

Realty Income Corporation (NYSE:O) operates as a real estate investment trust focused on acquiring and managing freestanding commercial properties. Its business centers on long-term net lease agreements that generate steady rental income from a diversified base of commercial tenants.