There Are Only a Handful of S&P 500 Stocks That Yield Over 5%. Here's My Top Pick to Buy Before the End of August.
If you are looking for a reliable dividend stock with a fat yield, this boring and reliable industry giant is the way to go.
Overview
The S&P 500 index (SNPINDEX: ^GSPC) is yielding around 1% today, which is very low. So when you look at stocks yielding five times that amount, you need to tread with a little caution. Many of them will be struggling businesses. That, however, is not the case with Realty Income (NYSE: O). Here's why even the most conservative dividend investors will find this high-yield stock attractive.
Realty Income is a real estate investment trust (REIT). The REIT business structure is designed to pass income on to shareholders in a tax-efficient manner, so high yields are normal in the REIT sector. From a big-picture view, there's nothing particularly shocking about Realty Income's 5.1% dividend yield. That said, it is not only higher than the S&P 500's yield but also higher than the average REIT's 3.5% yield.
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Originally published at www.fool.com.