Realty Income (O) Stock Pays Dividends Monthly. Does That Actually Make It a Better Dividend Stock?
More important than the frequency is the dividend yield -- and that was recently a fat 5.9%.
Overview
Realty Income (NYSE: O) is one of the relatively few dividend-paying companies that pays out each month, instead of quarterly. It's also a real estate investment trust (REIT) -- a company that owns lots of real estate properties, leasing them out to tenants -- and its dividend recently yielded a hefty 5.9%.
Does the fact that Realty Income pays monthly make it a superior dividend stock? My answer would be yes -- and no. Here's why it's a nice plus.
Details
Imagine living in retirement. You no longer have a regular paycheck coming in, and you're getting by with Social Security benefits, some other income sources, and dividend income. Your income, therefore, is probably lumpy -- more in some months, less in others. It can be helpful to know that however much dividend income you're getting from Realty Income, you'll get it every month.
Source
Originally published at www.fool.com.