Realty Income Corporation (NYSE:O) has raised its monthly dividend once again, lifting the payout to $0.2715 per share from $0.2710. The new dividend is scheduled to be paid on October 15, 2026, to shareholders of record as of September 30. It is the company’s 136th dividend increase since its NYSE listing in 1994, adding to one of the more established dividend-growth records in the REIT space.
At the new annualized rate of $3.258 per share, Realty Income yields roughly 5.5% based on a share price around $59-$60. That puts the stock firmly on the radar for income investors. The fact that Realty Income pays its dividend monthly is another appealing feature, giving shareholders a more frequent income stream than the quarterly schedule used by most U.S. dividend stocks.
Dividend Growth
The latest increase is modest, but that is nothing unusual for Realty Income Corporation. The company has generally focused on consistent, sustainable dividend growth rather than large increases. Its long record of raising the payout is perhaps more important than the size of any individual hike.
The monthly dividend has increased from $0.2710 to $0.2715, which works out to an increase of about 0.18%. In other words, investors should not expect this particular hike to make a major difference to their income right away. Instead, it is another small step in a much longer pattern of gradually increasing shareholder distributions. Over the longer term, the annualized dividend has climbed from $2.814 in 2020 to $3.258 today, showing that the payout has continued to move higher even if the pace of growth has been relatively slow.
Dividend Coverage and Cash Flow
When looking at a REIT like Realty Income Corporation, AFFO is a much better measure of dividend coverage than traditional earnings. Real-estate depreciation can significantly reduce reported net income, making the conventional payout ratio less useful.
In 2025, Realty Income paid $3.22 per share in dividends compared with $4.28 in diluted AFFO, resulting in an AFFO payout ratio of roughly 75%. That suggests the dividend is being supported by a reasonable level of recurring cash generation rather than being stretched to its limits.
The picture remained similar in the second quarter of 2026. Realty Income generated $1.09 in diluted AFFO per share and paid $0.8115 in dividends, putting the payout at around 74% of AFFO. That leaves some recurring cash flow after the dividend to support property investments, the balance sheet, and future increases.
For dividend investors, that coverage is more meaningful than simply looking at the company’s GAAP earnings payout ratio. Because depreciation weighs heavily on REIT earnings, AFFO gives a clearer indication of how comfortably Realty Income can fund its dividend.
Monthly Dividend Stability
For Realty Income Corporation, the real appeal is arguably the reliability of the income stream rather than rapid dividend growth. The company owns a large and diversified portfolio of properties that are generally leased under long-term net leases. As of June 2026, Realty Income had around 15,600 properties leased to nearly 1,800 clients across 92 industries, with an average remaining lease term of about 8.6 years.
That diversification and long lease duration give the company a relatively predictable base of rental income, which is important when it comes to supporting a regular dividend. Combined with its long history of monthly payments, this makes Realty Income particularly relevant to investors who value dependable income.
Dividend Outlook
The latest increase does not materially change Realty Income Corporation’s income profile, but it does reinforce what has always been central to the dividend story: a relatively high yield, monthly payments, and gradual dividend growth. The company continues to generate enough AFFO to cover its distribution, while its long-term lease portfolio provides a recurring source of rental cash flow. Dividend growth is unlikely to be spectacular, but Realty Income’s track record shows that management has remained committed to increasing the payout over time.
For income investors, the key question is therefore less about whether Realty Income can deliver rapid dividend growth and more about whether it can continue supporting a high starting yield while steadily increasing the monthly payout. The latest increase and current AFFO coverage suggest that, for now, the company remains on that path.
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This article is originally published at Insider Monkey.
