We recently published a list of the 10 High Growth Dividend Paying Stocks to Invest in. In this article, we are going to take a look at where Realty Income Corporation (NYSE:O) stands against other profitable dividend stocks.

Amid growing concerns about economic growth and President Trump’s tariffs, investors have been seeking safer investment options. In this environment, dividend stocks have gained significant traction, offering a defensive strategy while also providing steady passive income. Research from Ned Davis suggested that the tougher conditions facing the broader market this year could set the stage for dividend-paying stocks to perform well. The S&P Dividend Aristocrats Index, though it declined by over 8% in 2025 so far, is outperforming the wider market, which has fallen by more than 15% since the start of the year. Ned Davis’s Clissold and his team made the following comment about dividend investing in this environment:

“One would expect that companies that pay dividends are more stable and have lower growth rates. As a result, they should rally less in up markets and decline less in down markets. In other words, they have lower betas than non-dividend-payers. … As a group, dividend-payers have a beta of 0.99 versus 1.11 for nonpayers.”

Over the years, dividend stocks have proved their mettle because of strong balance sheets, stable businesses, and sound financials. These traits become even when important when the market is going through a rough stretch. Franklin Templeton noted that dividend-paying stocks are attractive because they help cushion market downturns while still offering strong growth potential. Over time and across different regions, dividend strategies have shown defensive characteristics. The report highlighted that from January 2022 through December 2024, these stocks experienced lower volatility and smaller declines than the broader market, whether looking globally, in the US, or across Europe. Notably, when concerns over inflation and rising interest rates flared up again in August, dividend stocks remained relatively resilient.

Considering the growing investor appetite for dividend stocks, more and more companies have initiated their dividend policy in recent times. Tech companies, which are usually associated with growth-oriented strategies, have also broached this territory and launched their dividends last year. They see dividends as a useful addition to share repurchase programs. While tech stocks currently offer relatively low dividend yields, the overall payouts are quite large—with J.P. Morgan projecting that just three major companies alone could return around $17 billion to shareholders over the coming year.

This trend marks an important development in the market. According to the report, the most promising dividend investments lie in “Compounders”—companies known for steadily raising their dividends over time. These firms, which make up nearly half of the strategy, are backed by consistent earnings growth. They not only offer dependable income but also form a strong base for achieving long-term outperformance in investment portfolios. Given this, we will take a look at some of the best high growth stocks that pay dividends.

Our Methodology

For this list, we screened for dividend stocks with sound financials and robust balance sheets. From that group, we picked companies that achieved positive revenue growth in the past five years. The final 10 picks are those with a five-year revenue growth rate exceeding 10%. The stocks are ranked in ascending order of their revenue growth rates.

At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Realty Income Corporation (NYSE:O)

5-Year Revenue Growth: 28.82%

Realty Income Corporation (NYSE:O) is a California-based real estate investment trust company that invests in single-tenant commercial properties across the US. The company owns a portfolio of 15,600 properties, with nearly 80% of them leased to well-known retailers like Dollar Tree, 7-Eleven, and Walgreens. Additionally, grocery and convenience stores make up 20% of the company’s holdings. This expanding portfolio plays a significant role in supporting its dividend policy.

For the fourth quarter of 2024, Realty Income Corporation (NYSE:O) reported strong performance, with revenues rising 24.4% year-over-year to $1.34 billion. Its Adjusted Funds From Operations (AFFO) per share increased by 4% to $1.05, marking the 14th consecutive year of AFFO growth. In the past five years, the company managed to grow its revenue by nearly 30%, which makes it one of the best high growth stocks that pay dividends.

Realty Income Corporation (NYSE:O) is known for its reliable monthly dividends, currently offering $0.2685 per share, a 0.2% increase from March. This marks the company’s 130th dividend increase since its IPO in 1994. As of April 8, the stock has an attractive dividend yield of 6.08%.

Overall, O ranks 2nd on our list of the best high growth stocks that pay dividends. While we acknowledge the potential of O as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than O but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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Disclosure: None. This article is originally published at Insider Monkey.