Realty Income Has a New Revenue Stream, and It's Growing Fast
Realty Income runs an investment fund that has multiple benefits.
Overview
Realty Income (NYSE: O) is known among dividend investors as the real estate investment trust (REIT) that pays monthly dividends and has increased its dividend for 116 consecutive quarters. It's paid a monthly dividend for 673 consecutive quarters.
With an annual dividend of $3.258 after the most recent increase in September, the REIT's dividend yield is 5.3%, a handsome yield by any measure. If you owned 100 shares today (valued at around $6,000), you'd receive $27.15 in dividend income each month.
Details
The company was one of the first REITs to adopt a sale-leaseback strategy. Basically, it buys real estate and then leases it back to the seller, who then pays the rent plus ongoing expenses, including property taxes, insurance, and maintenance. Many businesses will enter into this type of agreement because it frees up precious capital for their own investment and expansion.
Source
Originally published at www.fool.com.