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Globe and Mail
3 hours ago
- Business
- Globe and Mail
2 Top Dividend Stocks Yielding 5% or More to Buy Right Now for Passive Income
Key Points Realty Income is a high dividend payer with a long track record. Vici Properties is perhaps the safest way to bet on Las Vegas. 10 stocks we like better than Realty Income › Over time, dividends have become a smaller and smaller part of the stock market's total return, with the S&P 500 boasting an average yield of just 1.22% today, compared to 7.44% in 1950. That said, some companies still offer fat, consistently growing payouts, just like the good old days. Let's explore some reasons why Realty Income (NYSE: O) and Vici Properties (NYSE: VICI) could make fantastic long-term picks. Realty Income Corporation Real estate investment trusts (REITs) are a special type of investment that allows retail investors to benefit from the income generated from commercial real estate. But they aren't all the same. Realty Income stands out from the alternatives because of its track record of success, monthly payouts, and unique, risk-minimizing business model. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Since going public in 1994, Realty Income has increased its dividend for 30 consecutive years. The company funds the payout with the cash generated from its portfolio of 15,600 properties spread across North America and Europe. Realty Income's business model is relatively safe because of its use of triple-net leases, which mean the tenant is responsible for building-level operating costs like tax and insurance. It also tends to focus on recession-proof tenants like grocery stores, dollar stores, and auto repair shops, although many flashier clients like casinos and IT data centers have been sprinkled into the mix to help power growth. While macroeconomic threats like high interest rates have caused Realty Income's shares to underperform in recent years, they give investors an opportunity to buy the stock for cheap and lock in a relatively high yield of 5.55% at the time of writing, which is far above the market average. Vici Properties While Realty Income features a long track record and diversification into many different industries, Vici Properties offers more concentrated exposure. The company was formed in 2017 from the spinoff of real estate assets formerly owned by Caesars Entertainment Company during its bankruptcy restructuring. It has since evolved to become a leading entertainment-focused REIT, with 93 properties across North America. While entertainment is a consumer discretionary expenditure that may drop during economic downturns, Vici manages this risk with triple-net leases and high-quality tenants like Caesars and MGM Resorts, which have stable businesses and are deeply tied to their locations. The company has often relied on leaseback sales, which are when it buys an asset (such as a Casino) from a client who needs liquidity or to free up capital for elsewhere, only to rent it back to them, giving Vici access to stable, growing revenue. Vici also offers excellent growth potential as it expands into different asset types, such as golf courses, and potentially redevelops its 33 acres of undeveloped land located near the Las Vegas Strip. With a dividend yield of 5.15%, Vici is an excellent pick for investors who prioritize passive income. But don't overlook its stock price growth potential. Shares have risen around 60% over the last five years, with a 16% rally so far in 2025. The company probably won't stay this cheap for long. Which dividend stock is right for you? Realty Income and Vici Properties are both great picks for investors who prioritize sustainable passive income for the long term. If you could only pick one, the best choice will depend on your investment goals. Realty Income is better for investors who are willing to sacrifice a little growth potential for stability. But while Vici Properties doesn't have as long a track record, it offers more room for capital appreciation. Should you invest $1,000 in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025
Yahoo
2 days ago
- Business
- Yahoo
Could Investing $10,000 in Realty Income Make You a Millionaire?
Key Points Realty Income is a large and high-yield net lease REIT. The stock is likely to be a slow and steady tortoise. Don't underestimate the power of dividend reliability. 10 stocks we like better than Realty Income › If you invested $10,000 in Realty Income (NYSE: O) at the turn of the last century, it would be worth around $56,000 today. That is a long way off from $1 million, but don't look at this result in a vacuum. The truth is, Realty Income has outperformed the S&P 500 index (SNPINDEX: ^GSPC) over that span. And even if Realty Income can't repeat that feat, there's still a very good reason to own this high-yield real estate investment trust (REIT). Here's what you need to know. Times have changed, but history is important Back at the turn of the century, REITs were still a somewhat obscure asset class. In fact, they remained a niche segment of the financial sector until 2014, when real estate finally got its own sector designation. Ultimately, way back in 2000, REITs weren't well followed and were largely the purview of small, income-oriented investors. A material portion of the growth over the past 25 or so years has come from the inclusion of REITs in the portfolios of larger investors. But the performance numbers are still interesting to consider. The growth of $10K noted above for Realty Income compares to the same investment increasing to roughly $43,000 for the S&P 500 index. That, however, is a price-only figure. That same amount with dividend reinvestment would have grown to nearly $68,000 in the S&P 500 and, hold your hat, over $230,000 for Realty Income. How is that possible? The answer is that back in the 2000s, Realty Income's yield was quite high. Compounding the dividend via dividend reinvestment supercharged the stock's total returns. The S&P 500's yield wasn't nearly as high. So, Realty Income benefited from both the increase in price that came with the broader acceptance of the REIT asset class and its lofty, and steadily growing, dividend. What's the future going to look like? Obviously, the future is unknowable. However, given the past, Realty Income is likely to be a reliable dividend stock. It has increased its dividend annually for 30 consecutive years. If it keeps that up, even though growth is generally fairly modest in any given year, it will be a solid foundation for a broader income portfolio. But there's another bit to consider here. While Realty Income's dividend yield isn't as high as it was back when REITs were less popular, it is still pretty high at roughly 5.6%. For comparison, the S&P 500's yield is only about 1.2%. Compounding that dividend will still help to supercharge Realty Income's return. But that's not the only thing worth noting. Realty Income's stock price is down around 30% from the highs it reached prior to the coronavirus pandemic. That suggests that there is some recovery potential here to go along with the lofty dividend. Put the two together, and investors could see pretty attractive and reliable long-term returns over time. Realty Income is a foundational investment That said, Realty Income isn't going to excite you. But that's the point of buying this REIT. It is a boring and slow-growth business that will provide you with a lofty yield. You can pair it with lower-yielding but higher-growth investments to create a portfolio that will help turn you into a millionaire. That's the value of a $10,000 or $100,000 investment in Realty Income. It can give you the emotional and financial strength to take on the kind of investment risks that will drive the value of your portfolio into seven figures. And yet, as history shows, this REIT, which has outperformed the S&P 500, is anything but dead money. Should you invest $1,000 in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Reuben Gregg Brewer has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy. Could Investing $10,000 in Realty Income Make You a Millionaire? was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
3 days ago
- Business
- Yahoo
2 Reliable Dividend Stocks With Yields Above 5% to Buy Now and Hold Forever
Key Points Dividend-paying stocks usually outperform those that don't pay a dividend. Realty Income is a leading net lease REIT that has been offering a 5.6% yield. Alexandria Real Estate Equities and the life science industry it serves are going through a rough patch. 10 stocks we like better than Realty Income › You don't need to be an income-seeking investor to appreciate dividend-paying stocks. That's because businesses that commit to returning profits to shareholders have a tendency to outperform businesses that don't. The average dividend-paying stock in the benchmark S&P 500 index produced a 9.2% annualized return over the 50-year period ended 2024. Stocks in the same index that didn't pay dividends produced a disappointing 4.3% average annual return over the same time frame, according to Hartford Funds and Ned Davis Research. Realty Income (NYSE: O) and Alexandria Real Estate Equities (NYSE: ARE) are two reliable dividend payers that offer an average yield of about 6% at recent prices. Here's how they could make excellent portfolio additions for most investors, whether they're interested in above-average returns or growing their passive income stream. 1. Realty Income Shares of this real estate investment trust (REIT) are down by about 23% from a peak they reached in 2022. In June, Realty Income announced its 131st dividend raise since becoming a publicly traded company in 1994. The stock has declined over the past few years, but this reliable dividend grower hasn't lowered its payout. At recent prices, it offers an unusually large 5.6% yield. While Realty Income's payout has grown steadily, its pace in recent years has been slower than usual. Considering its slowing pace of growth and the rising risk-free rates investors can receive from Treasuries, it's no wonder the dividend stock has been under pressure. Realty Income is a net lease REIT, which means its tenants are responsible for all of the variable costs of building ownership, such as taxes and maintenance. At the end of March, 98.5% of its portfolio was leased out with an average remaining term of 9.1 years. With annual rent escalators written into long-term leases, cash flows are extremely predictable. Borrowing costs have risen, but this well-established REIT can source capital at rates its smaller peers can only dream of. With an A3 credit rating from Moody's, and an A- rating from S&P Global, Realty Income recently sold 1.3 billion euros worth of long-term notes at an average yield of 3.7%. Publicly traded net lease REITs account for about 4% of the addressable market in the U.S. In Europe, this figure is less than 0.1% which means there's lots of opportunity for expansion. With some of the lowest borrowing costs available, Realty Income will get to pick and choose tenants most likely to keep up with their rent. It might not be the most exciting stock to own, but it could be one of the least stressful positions in your portfolio. 2. Alexandria Real Estate Equities Shares of Alexandria Real Estate Equities are down about 63% from the peak they reached at the end of 2021. This REIT's dividend has been moving in the right direction since 2009, and at recent prices, it offers an eye-popping 6.4% yield. This specialized REIT acquires and develops real estate for the life science industry. Startup drugmakers experienced a great deal of investment during the COVID-19 pandemic. Unfortunately, enthusiasm for biotechnology start-ups began shrinking in 2022 as dramatically as it had grown a couple of years earlier. About 53% of Alexandria's annual rental revenue comes from tenants with stock market listings or investment-grade credit ratings. With less established biotechnology companies still responsible for nearly half of rental revenue, investors had reasons to be nervous before the company started revising its forward outlook downward. This April 28, and again on July 21, management lowered expectations for funds from operations (FFO), a proxy for earnings used to evaluate REITs. Alexandria Real Estate Equities looks like a good stock to buy now because there's still room for significant dividend raises despite the latest guidance revision. Management lowered its FFO expectation to a range between $8.11 and $8.31 per share this year. This is heaps more than the company needs to meet a dividend obligation currently set at $5.28 per share annually. Now isn't a great time for start-up biotechnology companies, but Alexandria Real Estate isn't having trouble finding established pharmaceutical giants eager to expand operations. Recently, the company executed a 16-year lease on a property with 466,598 rentable square feet. This is its largest lease to date. Raising rent hasn't been a problem for Alexandria Real Estate. In the first half of 2025, the company reported a 13.2% rental rate increase. An unusually difficult period for start-up biotech businesses could make the next year or two uncomfortable for Alexandria shareholders. The important thing to remember is that there are still thousands of diseases that lack treatment options, meaning lots of room for drug development companies to grow. This REIT might not return to growth in 2025 or 2026. For investors who buy now and hold for the long run, though, there's a great chance to receive a yield on cost far above 10% a decade from now. Adding some shares to a diversified portfolio looks like a very smart move for patient investors. Should you invest $1,000 in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alexandria Real Estate Equities, Moody's, Realty Income, and S&P Global. The Motley Fool has a disclosure policy. 2 Reliable Dividend Stocks With Yields Above 5% to Buy Now and Hold Forever was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
The Smartest Real Estate Dividend Stocks to Buy With $2,000 Right Now
Key Points EPR Properties has a 6% dividend yield. Realty Income has increased its monthly dividend 131 times since coming public in 1994. Healthpeak Properties pays a very healthy monthly dividend. 10 stocks we like better than EPR Properties › Investing in real estate investment trusts (REITs) can be a very effective way to generate consistent dividend income. These companies typically produce dependable rental income that supports attractive dividend payments. Most REITs also reinvest capital to expand their portfolios, supporting rental income and dividend growth. EPR Properties (NYSE: EPR), Realty Income (NYSE: O), and Healthpeak Properties (NYSE: DOC) currently rank among the most compelling REITs to buy for dividend income right now. They offer high-yielding monthly dividends, making them ideal choices for investors seeking reliable passive income. An attractive income stream EPR Properties focuses on experiential real estate such as movie theaters, eat-and-play venues, and attractions. It leases these properties to operators under long-term, net leases that require tenants to cover all operating costs, including routine maintenance, real estate taxes, and building insurance. This structure provides EPR with stable rental income. The REIT expects to generate between $5.00 and $5.16 per share of funds from operations (FFO) as adjusted this year. That's plenty of cash flow to cover its monthly dividend payments ($0.295 per share each month and $3.54 annually). At that payment rate, the landlord has a dividend yield of more than 6%, turning a $2,000 investment into $120 of annual dividend income (or $10 per month). EPR Properties reinvests its excess cash after paying dividends into additional experiential properties. The REIT spent $37.7 million in the first quarter, including buying an attraction property for $14.3 million. It has lined up another $148 million of experiential development and redevelopment projects it expects to fund over the next two years. These investments should grow the REIT's FFO per share by 3%-4% annually, supporting dividend growth within that range. An extremely durable dividend stock Realty Income owns a diversified portfolio (retail, industrial, gaming, and other properties), net leased to many of the world's leading companies. Its high-quality portfolio generates durable rental income to support its monthly dividend. Its portfolio has been so resilient that the REIT has only had one year when it didn't grow its adjusted FFO per share (2009). The REIT's durable rental income has provided it with a rock-solid foundation to pay dividends. Realty Income has declared 661 consecutive monthly dividends throughout its history. Better yet, it has raised its payment 131 times since its public market listing in 1994, including 111 straight quarters. That payout currently yields more than 5.5%. Realty Income is in an excellent position to continue increasing its dividend. It generates substantial free cash flow after paying dividends and maintains one of the industry's strongest balance sheets. Meanwhile, it has a massive market opportunity, with over $14 trillion of real estate in its core markets suitable for net leases. A very healthy income stock Healthpeak Properties holds a diversified portfolio of healthcare real estate. Its outpatient medical, lab, and senior housing assets benefit from steady and rising demand, producing consistent and growing rental income. This stable income supports the landlord's monthly dividend, which yields nearly 6.5%. Healthpeak's existing portfolio should grow its rental income by around 3% per year due to contractual rental escalation clauses. Additionally, the company expects to capture bigger rent bumps as existing long-term leases expire and it signs new leases at higher market rents. Meanwhile, Healthpeak's strong balance sheet and substantial excess cash flow after paying dividends provide ample flexibility to pursue new investments, including acquisitions, development projects, and mortgage loans secured by healthcare real estate. The REIT's growth drivers should increase its income, supporting further dividend growth. Smart REITs to buy for passive dividend income EPR Properties, Realty Income, and Healthpeak Properties generate reliable rental income to support their high-yielding monthly dividends. They also have strong financial positions that enable continued investments in new income-generating properties, fueling further income and dividend growth. These qualities make them top REITs to buy for investors seeking to turn $2,000 into dependable passive income. Should you invest $1,000 in EPR Properties right now? Before you buy stock in EPR Properties, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and EPR Properties wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Matt DiLallo has positions in EPR Properties and Realty Income. The Motley Fool has positions in and recommends EPR Properties and Realty Income. The Motley Fool recommends Healthpeak Properties. The Motley Fool has a disclosure policy. The Smartest Real Estate Dividend Stocks to Buy With $2,000 Right Now was originally published by The Motley Fool
Yahoo
4 days ago
- Business
- Yahoo
With a 5.6% Yield, This Dividend Aristocrat Pays Monthly. Is It a Buy Here?
Dividend stocks are a go-to option for investors seeking a steady income stream. While many companies pay dividends, Dividend Aristocrats are dependable names that allow investors to generate worry-free income. These companies are known for their financial strength, robust cash flow, and focus on rewarding shareholders. Typically, they are large, well-established businesses that have proven their resilience through various economic cycles. Their ability to maintain and grow dividend payments, even in tough times, makes them especially appealing to investors seeking stability and steady income. More News from Barchart 2 Recession-Proof Dividend Stocks to Buy for the Second Half of 2025 Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Among the Dividend Aristocrats, Realty Income (O) stands out for its high yield of 5.6%. Moreover, it is known as 'The Monthly Dividend Company,' paying and growing its payouts month after month. Realty Income: The Monthly Dividend Powerhouse Realty Income owns a diversified portfolio of more than 15,600 commercial properties. The real estate investment trust (REIT) has strategically spread its investments across various tenant types, property categories, and geographic regions. This broad diversification enhances the firm's resilience and supports consistent cash flow generation, enabling reliable dividend payments. Approximately 65% of the company's holdings comprise U.S. retail properties. These properties are occupied by high-quality tenants with a proven track record of financial stability throughout economic cycles. The vast majority, approximately 98%, of Realty Income's portfolio consists of single-tenant properties, most of which operate under triple-net lease agreements. These leases are particularly advantageous for the REIT because they provide predictable, long-term rental income while keeping operating costs low. Under this structure, tenants handle most property-related expenses, which helps protect Realty Income's profit margins and support its ability to continue paying attractive dividends. This focus on long-term leases and cost-efficient property management has helped Realty Income build an enviable track record of dividend payments and growth. Since going public, the company has declared 660 consecutive monthly dividends and has been included in the S&P 500 Dividend Aristocrats Index. Today, Realty Income offers a monthly dividend of $0.2690 per share, amounting to an annualized payout of $3.23. With a dividend yield of approximately 5.6%, the REIT is an attractive option for investors seeking stability and consistent monthly income. A Steady Dividend Machine Built for the Long Haul Realty Income has a solid history of dividend growth, and the REIT is likely to maintain this streak through its high-quality assets and steady growth. Its focus on prime real estate locations and high-quality tenants enhances the firm's ability to re-lease or dispose of assets as needed. Its conservative underwriting standards and strict investment criteria provide further protection against credit risk. An impressive 99.6% of the portfolio has seen no credit losses, reflecting the strength and stability of its tenants. Notably, the REIT remains committed to a tenant mix rooted in recession-resistant sectors, such as grocery stores and wholesale clubs. Realty Income benefits from industries that perform well even during economic downturns. More than 90% of its retail rent comes from tenants that provide nondiscretionary goods or essential services, critical buffers in uncertain times. Additionally, over a third of its tenants are investment-grade. Realty Income ended Q1 with a high occupancy rate of 98.5% and a rent recapture rate of 103.9% across 194 leases, with the vast majority of those leases being renewals from existing clients. Realty Income is also expanding its global reach, particularly in Europe, where it sees compelling opportunities. This geographic diversification helps mitigate country-specific risks while opening up new avenues for income generation. Looking ahead to the rest of 2025, Realty Income is well-positioned to deliver steady growth. Its large scale, solid financials, and diversified footprint across asset classes and geographies will enable it to pay and increase its monthly dividends in the future. The Bottom Line Realty Income has a 'Moderate Buy' consensus rating, implying it is not the highest-rated stock. However, this REIT is a go-to for investors who prioritize steady passive income. Its consistent monthly dividend payments, ability to increase its future payouts, and a high yield make it a compelling investment to start a growing income stream for years. On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
