Realty Income Has a New Revenue Stream, and It's Growing Fast
Key PointsThe U.S. Core Plus Fund generates management fees.
Realty Income (NYSE: O) is a real estate investment trust (REIT) that has been paying monthly dividends for an impressive 673 consecutive quarters, making it a popular choice among dividend investors. With an annual dividend of $3.258, the REIT boasts an attractive dividend yield of 5.3%, which translates to $27.15 in monthly dividend income for an investor holding 100 shares valued at approximately $6,000.
One of the unique revenue streams for Realty Income is its sale-leaseback strategy, where the company buys real estate and then leases it back to the original seller who pays rent and handles ongoing expenses such as property taxes, insurance, and maintenance. This arrangement allows businesses to free up capital for their own investment and expansion, contributing to the REIT's growing revenue stream.
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