3 Superstar Stocks for Your Retirement Portfolio | Personal Finance
Realty Income advertises itself as The Monthly Dividend Company, and it does what it says on the label: Each month, without fail, it cuts its investors a check. Currently, the REIT’s dividend yield is a shade over 4%, which is a higher figure than a great many dividend stocks, even in the relatively high-yield REIT universe.
Of course, the payout has that wonderful benefit of coming in monthly. The company has a dividend reinvestment program, which is a smart idea for those still saving for retirement. Plowing those 12-times-a-year distributions back into Realty Income stock to nab even more dividends can quickly snowball your investment.
Realty Income has been doling out its dividend on the regular since 1994, meaning it’s managed to squeeze out a distribution through booms and busts, not to mention the roller coaster that has been the coronavirus pandemic. As a frequent raiser, it is a Dividend Aristocrat, one of the few S&P 500 index component companies that has lifted its payout for at least 25 years in a row.
The REIT is a premier operator in its field, largely because its tenant base is so durable. Among its renters are some of the top names in American commerce, companies with sprawling retail networks such as 7-Eleven, CVS Health, Walmart, and FedEx. Even through retail apocalypses and global pandemics, these businesses endure, often because they’re essential in-person shopping outlets for millions of customers.