Meet the Monthly Dividend Stock That Has Raised Its Payout 137 Times Since 1994. Here's Why It's a Buy Before the End of November.

Realty Income, often dubbed The Monthly Dividend Company, is a real estate investment trust (REIT) that has raised its monthly dividend payment an impressive 137 times since its 1994 listing on the NYSE. This makes it an exceptionally rare stock in the dividend sector. Investors looking to buy before the end of November may find this REIT particularly appealing.

The company recently declared its latest dividend payment of $0.274 per share, effective December 15th, marking the 137th increase since 1994. This represents a 0.9% increase from the previous month's payment and extends an already remarkable streak of 117 consecutive quarters of dividend growth, or over 32 years.

To receive this upcoming payment, investors need to be shareholders as of November 30th. However, buying the stock now could be advantageous due to its current valuation, which is more than 10% below its 52-week high. At around $60 per share, Realty Income offers a dividend yield of 5.5%, a compelling rate in today's market.

Moreover, the REIT's AFFO (adjusted funds from operations) per share is expected to be around $4.45 this year, comfortably covering the dividend. This puts Realty Income's stock at a reasonable 13.5x earnings, making it an affordable investment for a high-quality REIT.

The REIT's recent stock price decline can be attributed to rising interest rates, with the 10-year Treasury now over 5%, up from around 4% before the Iran war began. The Federal Reserve's anticipated rate hike at their upcoming meeting could further boost REITs like Realty Income, which are sensitive to interest rate changes.

Looking ahead, Realty Income sees significant growth opportunities linked to two major secular trends: the need for retirement income due to an aging global population, estimated at $50 trillion, and the $15 trillion of real estate currently owned by companies. The company's new investment management platform allows institutional investors to invest alongside Realty Income, potentially accelerating AFFO growth and supporting higher dividends.

These factors combine to make Realty Income an attractive buy before the end of November. With its strong growth prospects, attractive valuation, and commitment to increasing dividends, Realty Income could deliver substantial total returns to investors in the years to come.