These 3 Dividend Stocks Just Reported Strong Earnings. Here's the One I'm Buying Now.

Three real estate investment trusts, or REITs, reported third-quarter results recently, and the results looked strong across the board. Realty Income (NYSE:O), Empire State Realty Trust (NYSE:ESRT) and Ryman Hospitality Properties (NYSE:RHP) own very different kinds of real estate, and all three raised their full-year guidance.

I own all three of these real estate stocks, and have opportunistically added to each position over the years. With that in mind, here's what each company reported, and the one I think is the most compelling buying opportunity right now.

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1. Ryman Hospitality Properties

Ryman owns large convention-focused resorts, including several Gaylord-branded hotels, as well as the entertainment business behind the Grand Ole Opry. It reported record third-quarter revenue, up about 11%, and adjusted funds from operations (AFFO) of $1.79 per share, up 9.8%. Before we go further, AFFO is the cash flow metric that REITs generally use in place of earnings per share, as it better reflects the true profitability of real estate. Management also raised the midpoint of its full-year AFFO guidance to $9.29 per share, from $9.08.

It wasn't all good news. The weak spot was entertainment, where operating income fell 41%. Ryman also issued about 5.9 million new shares to help pay for a large Orlando resort it bought in September. With the stock near its 52-week high, the dividend yield is about 3.6%. Ryman is the fastest grower of the three, but investors are paying up for that growth.

2. Empire State Realty Trust

Empire State Realty owns Manhattan office buildings, including its namesake, along with the observatory at the top of the Empire State Building. Its office business is improving quickly, with 95.5% of its office space now leased, including signed leases that haven't started yet. Management raised its 2026 forecast for core funds from operations (FFO), a cash flow measure similar to AFFO, to $0.77-$0.80 per share.

The observatory is the problem. Its revenue fell to $26.8 million from $36.0 million a year earlier, and its net operating income dropped by about 41% due to weak visitation. The stock has fallen about 37% over the past year and trades for roughly six times the midpoint of this year's FFO guidance. Management has taken advantage by buying back $85.8 million of stock since its second-quarter earnings call.

I've owned Empire State Realty since 2020, and it's the value pick of the group. The dividend is the smallest, though, with a yield of about 2.8%.

3. Realty Income

Realty Income owns about 15,500 single-tenant properties under long-term net leases, which means tenants cover most property expenses. Most are occupied by retail tenants whose businesses tend to hold up across economic cycles, such as drug stores and grocery stores.

In the third quarter, Realty Income's AFFO grew about 4%, occupancy was 98.8%, and rent on released properties was 103.5% of prior rent. All of these are strong, especially given that the high-interest rate environment tends to put pressure on REITs' profitability and growth prospects. Realty Income invested $2.6 billion during the quarter at an initial cash yield of 6.8% and raised its 2026 AFFO guidance to $4.45 to $4.46 per share. One of the most reliable dividend-paying stocks in the entire market, Realty Income has now paid 676 consecutive monthly dividends and raised its payout for 116 straight quarters.

Why Realty Income is the one I'm buying

At its current stock price as of this writing, Realty Income has a dividend yield of about 5.5%, about twice Empire State Realty's yield and well above Ryman's. Its dividend is about 73% of this year's expected AFFO, a normal and comfortable level for a REIT. At roughly 13x AFFO, the stock is cheaper than Ryman but less cheap than Empire State Realty.

To be sure, Realty Income won't grow as fast as Ryman, and it isn't likely to double or triple in a few years. However, a yield above 5.5% plus AFFO growth of about 3% to 4% a year adds up to total returns in the high single digits to low double digits over time, with far less volatility than the other two, and its growth is likely to pick up if and when interest rates cool off. Empire State Realty could deliver bigger gains if the observatory recovers, but it's a turnaround bet, and its dividend doesn't do as much heavy lifting.

I've owned Realty Income for more than a decade and keep adding to my position, and this report gave me another reason to buy. I reinvest every monthly dividend, and it's the kind of stock that lets me not worry about my portfolio. To be clear, I have no plans to sell any of the three, but Realty Income is the one I'm most likely to add shares of right now.

Matt Frankel, CFP® has positions in Empire State Realty Trust and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Empire State Realty Trust and Ryman Hospitality Properties. The Motley Fool has a disclosure policy.