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This Unstoppable High-Yielding Dividend Stock Just Hiked Its Payout for an Incredible 131st Time in the Last 30 Years

Matt DiLallo, The Motley Fool

5 min read

In This Article:

  • Realty Income has raised its dividend payment 131 times since coming public in 1994.

  • The REIT's high-yielding payout is on a rock-solid foundation.

  • The company has plenty of room to continue expanding its portfolio and dividend payment.

  • 10 stocks we like better than Realty Income ›

Some companies do an incredible job of paying dividends. Realty Income (NYSE: O) is one such company. The real estate investment trust (REIT) recently delivered its 131st dividend increase to its investors since its public market listing in 1994. It's the REIT's fourth dividend increase already this year.

With one of the most bankable high-yielding monthly dividends around, Realty Income is an ideal stock to buy and hold for passive income.

A hand putting another coin on a rising stack.

Image source: Getty Images.

Realty Income recently declared its latest monthly dividend payment. The REIT will pay investors $0.269 per share in mid-July to those who own the stock by the first of next month. That raises its annualized dividend rate to $3.228 per share, which is a more than 5.5% yield at its recent stock price. The payout is 0.2% higher than its last payment and 2.3% above the year-ago level.

The REIT's most recent raise is its 131st since coming public. It also extends the company's growth streak to 111 quarters in a row. Realty Income has increased its dividend in all 30 years since its public market listing.

A chart showing Realty Income's dividend growth over the last 30 years.

Data source: Realty Income.

CEO Sumit Roy commented on Realty Income's latest dividend declaration in a press release. He stated, "The quality and diversification of Realty Income's portfolio allows us to provide investors reliable monthly dividends that increase over time." The CEO also remarked, "During times of market uncertainty, Realty Income remains committed to delivering investors predictable income streams."

Realty Income should have no problem continuing to increase its dividend in the future. Driving that view is the strong foundation the company has built over the years.

The bedrock is its high-quality real estate portfolio. Realty Income owns a diversified portfolio of over 15,600 retail, industrial, gaming, and other properties net leased to many of the world's leading companies. Notable tenants include 7-Eleven, Dollar General, FedEx, Home Depot, and Walmart. Its focus on investing in properties secured by long-term net leases enables the REIT to generate very predictable cash flow because tenants cover all property operating expenses, including routine maintenance, real estate taxes, and building insurance.