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If you're looking for a consistent, monthly income check, look no further than
Realty Income (O - Get Report). Realty income is one of the largest commercial REITs in the country, with more than 2,600 properties in 49 states. The firm is known for its monthly dividend payouts, currently yielding an impressive 4.27% annually.
Realty Income is essentially the prototypical commercial REIT. The firm leases properties to tenants using long-term triple net leases, which give the firm consistent, predictable income growth without needing to worry about variables such as maintenance, property taxes, or insurance -- tenants are responsible for those costs. In many ways, that makes Realty Income a better income generation instrument than a proxy for the real estate market that many investors are looking for when they buy shares.
Conservative business practices -- such as buying existing properties with proven performance, and mitigating the risks of leasing to retailers with limited financial wherewithal -- have helped the firm thrive post-recession. That's not enough for short sellers though. With a short interest ratio of 11.9, it would take Realty Income more than two and a half weeks for shorts to cover their positions.
That outsized short interest makes this stock a prime short squeeze condidate right now.
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