I Just Bought More Realty Income (O) Stock. Here’s How Many Shares It Takes to Collect $1,000 a Month.

I recently acquired an additional six shares of Realty Income (O), bringing my total ownership to 113 shares. This investment has increased the monthly dividend income I receive from the company. Curious as to how many shares would be needed to generate $1,000 in dividend income each month, I discovered that at Realty Income's current monthly dividend rate of $0.2715 per share ($3.258 annually), an investor would require 3,583 shares to achieve that income level.

This would cost over $206,250 at the stock's recent price of $56 per share, which is a significant investment for a single stock, considering my portfolio size and growth needs before retirement. Despite this, Realty Income remains a core income holding for my future retirement strategy due to its high dividend yield of 5.8%, a long history of dividend increases (136 raises with a 4.1% compound annual growth rate since its public market listing in 1994), and a financially robust profile backed by durable cash flows and a fortress financial foundation.

The REIT's diverse portfolio of retail, industrial, gaming, data center, and other properties, secured by long-term net leases with leading global companies, provides it with very durable and steadily rising income. With an A-rated balance sheet and strong post-dividend free cash flow of nearly $1 billion in annual adjusted free cash flow, Realty Income has the resources to continue investing in new income-generating properties.

Its estimated $15 trillion in real estate assets across the U.S. and Europe offers a significant growth runway. Therefore, despite not reaching $1,000 in monthly dividend income, Realty Income will likely remain a significant contributor to my future retirement income as I continue to grow this position.