Why Realty Income (O) Remains One of the Market’s Most Reliable Dividend Stocks

Realty Income Corporation (NYSE:O) is included among the 15 Best Dividend Paying Stocks to Buy Right Now. 

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Realty Income Corporation (NYSE:O) is a real estate investment trust that owns and manages freestanding commercial properties leased under long-term net lease agreements. Its tenant base is diversified and includes investment-grade, investment-grade-equivalent, and other operators.

The company has earned a reputation as one of the market’s most reliable dividend payers. Since listing on the New York Stock Exchange in 1994, Realty Income has increased its monthly dividend 134 times. It has also delivered 114 consecutive quarterly dividend increases and extended its annual dividend growth streak to 31 years. The business continued to generate solid results in the first quarter. Adjusted funds from operations (AFFO) came in at $1.13 per share, up 6.6% from a year earlier. That growth helped support another round of dividend increases. Over the past year, Realty Income raised its dividend by 1.8% while reducing its payout ratio to 71.7%.

The REIT’s property portfolio remained a source of stability. Occupancy stood at 98.9% during the quarter, matching the level recorded in the fourth quarter and improving from 98.5% in the first quarter of last year. Leasing activity was also healthy, with the company completing new and renewal leases on 243 properties. Those agreements were signed at average rental rates 3.4% higher than the previous leases for the same space.

Realty Income also continued to expand its portfolio. The company invested $2.8 billion in new properties during the quarter, including $200 million that came through its growing network of strategic partners. The combination of steady portfolio performance, disciplined growth, and a conservative payout ratio has helped support its long-standing record of dividend increases.

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