5 Best REIT Dividend Stocks

3. Realty Income Corporation (NYSE:O)

Dividend Yield as of October 11: 5.19%

Realty Income Corporation (NYSE:O) is another best dividend stock in the REIT sector as the company pays monthly dividends to shareholders. The REIT has a 28-year track record of dividend growth and has paid 627 consecutive monthly dividends on its common stock throughout its 53-year operating history. It currently pays a monthly dividend of $0.248 per share, with a dividend yield of 5.19%, as of October 11.

In Q2 2022, Realty Income Corporation (NYSE:O) generated $743 million in free cash flow (FCF), up from $513.4 million in the previous quarter. The company’s FCF was enough to support its dividend payments during the quarter, worth $445.8 million. These dividend payments represented 76.5% of the company’s AFFO. Moreover, its revenue for the quarter came in at $810.4 million, up 75% from the same period last year.

In October, Raymond James maintained its Outperform rating on Realty Income Corporation (NYSE:O) with a $68 price target, as the firm sees the company as a strong risk/reward play within the net lease amid the uncertain market situation.

At the end of Q2 2022, 19 hedge funds tracked by Insider Monkey owned stakes in Realty Income Corporation (NYSE:O), down from 22 in the previous quarter. These stakes are collectively valued at over $200.7 million. Citadel Investment Group was the company’s leading stakeholder in Q2.