We just lately revealed an inventory of the 15 Greatest Excessive-Yield Dividend Shares for 2025 and Past. On this article, we’re going to try the place Realty Revenue Company (NYSE:O) stands in opposition to different greatest high-yield dividend shares.
Over time, dividend-paying shares have develop into more and more well-liked as traders lean towards income-focused funding methods. Many conservative traders have dedicated a whole lot of billions of {dollars} throughout quite a few funds primarily based on the idea that firms with a constant monitor report of elevating dividends are inclined to ship the strongest long-term market efficiency.
Based on Ed Clissold of Ned Davis Analysis, over 80% of firms within the broader market at present pay dividends, and 324 of them have both initiated or elevated their payouts over the previous 12 months. Curiously, it was earlier analysis by Clissold’s agency that helped spark the widespread curiosity in dividend-growing shares. That research, primarily based on an older return calculation methodology that has since been extensively replicated, highlighted the robust efficiency of firms that usually elevated their dividends.
Nevertheless, because the agency has up to date its strategies to align with adjustments within the trade, the findings recommend that whereas dividend growers have carried out properly, specializing in high-yielding dividend shares could also be much more rewarding. This yield-based technique has outperformed dividend growers in each rising and falling markets since 1973. Monetary advisers recommend that traders begin by inspecting a inventory’s dividend yield, which is set by dividing the annual dividend by the inventory’s present value. This determine signifies the revenue an investor earns for each greenback put into the inventory.
Nevertheless, excessive dividend yield tends to return with increased volatility and extra frequent portfolio turnover. It isn’t all the time a optimistic signal. It might probably typically sign bother, particularly if it’s pushed by a drop within the inventory’s value. In these conditions, there’s a threat that the corporate could cut back its dividend funds—one thing that always occurs during times of economic pressure. Advisers emphasize the necessity to transcend surface-level metrics and look at an organization’s core financials to evaluate its total stability and power. Jason Alonzo, managing director at Harbor Capital Advisors, made the next remark about investing in dividend shares:
“Be sure the corporate has a robust steadiness sheet and its prospects for earnings-per-share progress are robust, so the corporate is well-positioned to keep up dividend funds sooner or later even when there’s a recession.”
Whereas the talk between dividend progress and excessive yield continues, analysts emphasize that dividend-paying shares are usually not all created equal. Shares that supply a stable yield together with regular dividend will increase usually mirror robust fundamentals, as they recommend the corporate can reward shareholders whereas nonetheless investing in future progress. The dividend payout ratio performs a vital function in assessing an organization’s flexibility with its dividend coverage. Corporations that use practically all of their earnings to cowl dividends—or barely earn sufficient to maintain them—would possibly face challenges, particularly when beneath aggressive strain, resulting from restricted money stream for operational assist.
Is Realty Revenue Company (O) the Greatest Excessive-Yield Dividend Inventory for 2025 and Past?
An expansive outside view of a skyline backed by residential complicated, symbolizing the corporate’s actual property options.
For this text, we used a screener to establish dividend firms with above-average dividend yields. From there, we picked firms which have raised their payouts for no less than 10 consecutive years, which reveals their long-term progress. Lastly, we picked 15 shares with the best dividend yields, as of Might 9, and ranked them accordingly.
At Insider Monkey, we’re obsessive about hedge funds. Why are we within the shares that hedge funds pile into? The reason being easy: our analysis has proven that we will outperform the market by imitating the highest inventory picks of the perfect hedge funds. Our quarterly publication’s technique selects 14 small-cap and large-cap shares each quarter and has returned 373.4% since Might 2014, beating its benchmark by 218 share factors (see extra particulars right here).
Dividend Yield as of Might 9: 5.68%
An American actual property funding belief firm, Realty Revenue Company (NYSE:O) invests in single-tenant business properties throughout the US. The corporate acquires numerous properties and leases them to numerous companies, sharing the rental revenue with its traders. Whereas actual property funding trusts (REITs) can face challenges in the event that they rely too closely on one tenant or function in a weak sector, Realty has minimized that threat by leasing its 15,621 properties to 1,565 shoppers throughout greater than 89 completely different industries. This broad diversification—additional strengthened by final 12 months’s merger with Spirit Realty Capital—helps shield the corporate from the affect of financial slowdowns.
Within the first quarter of 2025, Realty Revenue Company (NYSE:O) reported income of $$1.3 billion, which confirmed an 8.6% progress from the identical interval final 12 months. The income additionally exceeded analysts’ estimates by $15.2 million. For the quarter, the corporate reported internet revenue accessible to frequent stockholders of $249.8 million, translating to $0.28 per share. Adjusted Funds from Operations (AFFO) per share rose 2.9% year-over-year to $1.06. Throughout the interval, the corporate invested $1.4 billion at an preliminary weighted common money yield of seven.5% and achieved a lease recapture charge of 103.9% on re-leased properties.
Realty Revenue Company (NYSE:O) is likely one of the greatest dividend shares on our checklist as the corporate pays month-to-month dividends to shareholders. In March 2025, it marked its a hundred and tenth consecutive quarterly dividend improve—its one hundred and thirtieth improve total since being listed on the New York Inventory Change in 1994. It at present pays a month-to-month dividend of $0.2685 per share for a dividend yield of 5.68%, as of Might 9.
General, O ranks 4th on our checklist of the perfect excessive yield dividend shares. Whereas we acknowledge the potential of O as an funding, our conviction lies within the perception that some deeply undervalued dividend shares maintain better promise for delivering increased returns, and doing so inside a shorter timeframe. If you’re on the lookout for a deeply undervalued dividend inventory that’s extra promising than O however that trades at 10 instances its earnings and grows its earnings at double digit charges yearly, try our report concerning the grime low-cost dividend inventory.
