Realty Income’s revenue-generating real estate portfolio is ideally suited for supporting sustained dividend payments.
The real estate investment trust has the dividend track record to prove it, too.
While net growth potential may be modest, the ticker’s above-average yield still makes it well worth it for income-minded investors.
Investors know that most dividend stocks dish out their payments on a quarterly basis. That's not a regulatory requirement, though. These companies can pay this money out at any cadence they like, including a monthly one. Some of them do so, in fact, including real estate investment trust Realty Income (NYSE: O).
To this end, how much monthly income would a $30,000 holding in Realty Income generate right now?
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If you're not familiar with it, like all other real estate investment trusts -- or REITs -- this one owns revenue-bearing real estate. However, even by REIT standards, Realty Income is unique. It specializes in serving as a landlord to the brick-and-mortar retailing industry. Its top tenants include Dollar General, Walgreens, and 7-Eleven.
Image source: Getty Images.
The industry focus clearly works, too. Not only has the company paid a monthly dividend like clockwork for decades, but it has also raised its per-share payment for 31 consecutive years. Indeed, it's raised its dividend every quarter for almost 29 years.
So how much would a $30,000 holding produce every month? Based on a current per-share payment of $0.271, a $30,000, 476-share stake in Realty Income would generate right at $129 per month at this time. Annualized, that's just under $1,550 per year, translating into a dividend yield of 5.2%.
You'd of course be hard-pressed to find another name that offers a similar dividend yield and equally reliable income with the convenience of monthly dividend payments, although such companies are out there.
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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.