Even though Realty Income (O) 0.21% dividend hike isn't particularly impressive, the firm's payout definitely is. The firm is another name that hiked its payout on Tuesday, bringing its monthly dividend to 14.58125 cents per share -- that's the 65th dividend increase Realty Income has announced since going public back in 1994. Right now, this stock offers investors a 4.61% yield.
Realty Income is a real estate investment trust (or REIT), but don't think that this firm is a great way to get exposure to the real estate market. While Realty Income does own 2,600 retail properties, their value isn't realistically reflected in O's share price in the near-term -- instead, this stock is an income generation vehicle, pure and simple.Because commercial REITs enter into long-term triple-net leases with their tenants, they're able to generate recurring surprise-free rental revenues without the hiccups of things like maintenance fees or property taxes. And the REIT structure means that Realty Income is required to pay out the vast majority of its income as dividends. Those factors make this firm a perennially solid choice for investors looking for consistent, high yields. To see these dividend plays in action, check out the Dividend Stocks for the Week portfolio on Stockpickr. And if you haven't already done so, join Stockpickr today to create your own dividend portfolio. -- Written by Jonas Elmerraji in Baltimore.
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