Passive Income: How Much Would You Need to Invest in Realty Income (O) Stock to Collect $1,000 in Annual Dividends?
You'll get to that $1,000 easier than with most stocks, thanks to Realty Income's fat 5.2% dividend yield.
Overview
Investors give Realty Income (NYSE: O) a closer look because of its dividend income. Given the right amount of initial investment, the stock could easily generate $1,000 or more annually. But is Realty Income a high-quality stock that deserves your money? I think so.
It's important to know that Realty Income is a real estate investment trust (REIT), which is a kind of company that owns many real estate properties, leasing them out to tenants, and collects rents that it then uses to buy more properties and pay out most of its net profits to shareholders.
Details
Realty Income does this effectively because it relies on "triple-net leases" with its tenants, where the tenants are responsible for real estate taxes, insurance, and operating expenses on the property (not the owner). Operating this way keeps things simpler for Realty Income.
Source
Originally published at www.fool.com.