As someone who’s watched dozens of dividend stocks rise and fall, Realty Income (NYSE: O) stands out for one simple reason: it doesn’t just promise high yield—it delivers it monthly, like clockwork. And in this economic climate, that consistency is rare. If you’re chasing reliable passive income without the daily drama of the market, Realty Income deserves a hard look.

Realty Income’s Consistent Growth Makes It a Top Choice for Passive Income

On [date of article], The Motley Fool highlighted Realty Income as the best high-yield dividend stock to buy for passive income. Why? The REIT boasts a dividend yield north of 5.5%, backed by a stable real estate portfolio, disciplined financial management, and an ironclad history of monthly dividend payments. With over 15,600 properties and tenants across 91 industries, this REIT isn’t just diversified—it’s built like a fortress.

Why I Think Realty Income Belongs in a Passive-Income Portfolio

1. Monthly Payouts Align with Real-Life Cash Flow Needs

Most dividend stocks pay quarterly—but bills don’t. Realty Income’s monthly dividend is more than a marketing gimmick; it mirrors how people actually spend. That means if you’re building a portfolio to cover everyday expenses, this REIT fits the rhythm of real life.

2. Resilience That’s Been Battle-Tested

Realty Income’s tenants are largely shielded from e-commerce disruption and economic downturns. With over 90% of rental income coming from recession-resistant industries, this isn’t just luck—it’s smart portfolio construction. In fact, the company’s adjusted FFO only declined once—in 2009—during the peak of the financial crisis. That tells me this isn’t a fair-weather investment.

3. Fortress-Like Financials Mean Lower Risk

It’s rare to find a high-yield stock with an A-rated balance sheet, but Realty Income is one of just 10 REITs in the S&P 500 with A3/A- or better bond ratings. This allows them to borrow at cheaper rates and expand without compromising stability—a huge win for long-term investors.

4. Growth Engine is Still Running Strong

Some high-yield stocks are tapped out. Realty Income isn’t. It retains nearly $1 billion annually in free cash to reinvest in more properties. That growth capital, plus a conservative 75% payout ratio, creates a solid runway for future dividend hikes.

What Should You Do if You’re Looking for Passive Income?

If you’re a retiree or nearing retirement:

This REIT’s monthly income stream could pair nicely with Social Security or a pension, smoothing out your cash flow without requiring stock sales.

If you’re building long-term wealth:

Consider reinvesting those monthly dividends to compound growth. Over time, your income stream could snowball into something significant.

If you’re nervous about stock volatility:

Realty Income offers a more predictable return, especially compared to high-growth tech stocks or speculative plays. This is a “sleep-well-at-night” asset.

Quick Explainer: What Is a REIT and Why Does It Matter?

What is a REIT, and how does Realty Income use this structure?

A Real Estate Investment Trust (REIT) is a company that owns income-producing real estate and distributes at least 90% of its taxable income as dividends. Realty Income uses this structure to generate steady, tax-advantaged income for shareholders—while reinvesting for growth.

Final Thought:

In an investment world obsessed with high-flying tech and crypto, boring can be beautiful. Realty Income may not double your money overnight—but it can help you sleep better, plan better, and live better. That’s the power of reliable income.

Reader Q&A

Is now a good time to buy Realty Income?

With its yield above 5.5% and recent price softness, many investors see current levels as an attractive entry point—especially for income-focused portfolios.

Are there risks to investing in Realty Income?

Yes—mainly interest rate sensitivity. REITs can dip when rates rise. But Realty Income’s strong balance sheet helps offset that pressure better than most.

Can I hold Realty Income in a retirement account?

Absolutely. In fact, holding it in a tax-advantaged account like an IRA can help you defer or avoid taxes on dividends altogether