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Realty Income’s 5% Yield Draws Scrutiny With Shares More Than 20% Below Highs

Solid FFO coverage plus near-99% occupancy suggest the monthly payout remains supported.

Overview

  • The REIT pays a $3.24 per-share annual dividend and has raised its monthly payout at least once every year since 1994.
  • Q3 2025 funds from operations were $4.20 per share, providing coverage of the current dividend with cash to spare.
  • Realty Income owns over 15,500 single-tenant, net-leased properties, reports occupancy just under 99%, and counts Home Depot, Dollar General and Tractor Supply as tenants.
  • The roughly 5% trailing yield, far above the S&P 500’s 1.2% average, has made the stock popular on Robinhood.
  • Recent Federal Reserve rate cuts are expected to lower borrowing costs and could improve deal economics, though REIT payouts can still be adjusted despite the 90% income distribution rule.