Realty Income Reports Earnings Aug. 5. Here's How Much $15,000 Invested Pays Annually.

It's historically been one of the market's favorite real estate investment trusts, and for good reason. That's not likely to change when the company reports its second-quarter numbers after the closing bell rings on Aug. 5, either. If anything, in fact, investors' appreciation for Realty Income's (NYSE: O) track record is apt to continue improving in step with its fiscal results.

The kicker: With its yield already as high as it is, there's no waiting period for newcomers to start generating meaningful income from this stock.

But first things first.

Image source: Getty Images.

Continued progress in the cards

As was noted, Realty Income is a real estate investment trust, or REIT. That just means it owns a portfolio of rental or revenue-bearing real estate, and as long as it passes the majority of its profits along to shareholders as they're generated, those profits aren't taxed at the corporate level first.

Even by REIT standards, though, Realty Income is something of a standout. See, its focus is brick-and-mortar retailing. Its top tenants include the industry's most resilient names, such as Walmart, Home Depot, Dollar General, and Tractor Supply. Their staying power is why this REIT's occupancy rate has consistently been above 98% and why Realty Income's not only been able to pay a monthly (yes, monthly) dividend like clockwork for nearly 56 years, but has also upped its annual dividend payment every year for the past 31 years.

This resiliency is likely to be confirmed again by Realty Income's upcoming Q2 numbers. Analysts expect reported revenue growth of 7% year over year, reaching $1.45 billion, pushing per-share funds from operations (a REIT's equivalent to profit) up from $1.05 in the comparable quarter a year ago to $1.09 this time.

One quarter's results, however, don't mean much for anyone who owns or is eyeing this stock right now. This ticker's big selling point has been and remains its dividend.

Dividend income potential

Cutting straight to the chase, Realty Income's forward-looking dividend yield currently stands at just under 5%. For perspective on the number, a $15,000 stake in the REIT -- roughly 229 shares -- would generate nearly $750 in annual dividend income. Just remember that it pays on a monthly basis, so you'd be getting on the order of $62 per month.

No, that's not a huge amount of money. You'd be hard-pressed to find a higher-yielding holding of similar risk, though. Also keep in mind that this dividend grows pretty quickly, at an average annualized rate of 4.1% since the stock was listed on the New York Stock Exchange.

These monthly payments are also likely to continue growing at a similar pace despite the retailing industry's saturation-driven headwind. In addition to serving the retail industry's most enduring names, Realty Income is easing into the data center business. Since cloud-based access to remote data centers' servers is often paid for monthly, they're also well suited to be REIT-owned, as this business structure is designed to cost-effectively pass this recurring rental income along to shareholders.

Keep your eyes and ears open for more information on that budding business on Aug. 5, too, which could move this ticker more than the rest of its results.

James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot, Realty Income, Tractor Supply, and Walmart. The Motley Fool has a disclosure policy.