Realty Income (O) raised its monthly dividend to $0.2715 per share on September 8, the 136th increase since the real estate investment trust listed on the New York Stock Exchange in 1994. The new rate annualizes to $3.258 per share and yields roughly 5.3 percent at recent prices near $61. The dividend pays October 15 to shareholders of record on September 30.
The setup
Realty Income calls itself The Monthly Dividend Company, and the record supports the nickname. The trust has declared 675 consecutive monthly dividends across a 57-year operating history. It has raised the payout for 31 consecutive years and grown the dividend at a 4.1 percent compound annual rate since its 1994 listing.
Key numbers
| Dividend detail | Figure |
|---|---|
| New monthly dividend | $0.2715 per share |
| Previous rate | $0.2710 per share |
| Increase | About 0.2 percent |
| Annualized dividend | $3.258 per share |
| Payable date | October 15, 2026 |
| Record date | September 30, 2026 |
| Increases since 1994 | 136 |
| Approximate yield | 5.3 percent near $61 |
Is the dividend covered
The payout rests on real cash flow. Realty Income produced $1.09 per share in diluted adjusted funds from operations during the second quarter and paid monthly dividends totaling roughly $0.81 per share in the quarter. That works out to a payout near 74 percent of AFFO, leaving about a quarter of cash earnings retained inside the business.
| Coverage metric | Figure |
|---|---|
| Q2 2026 AFFO per share | $1.09 |
| Q2 dividends per share | About $0.81 |
| AFFO payout ratio | About 74 percent |
| Full-year AFFO midpoint | $4.44 |
| Portfolio occupancy | 98.8 percent |
| Properties owned | 15,588 |
| Rent recapture on re-leasing | 102.7 percent |
The Treasury spread problem
Yield is only half the story. The 10-year Treasury sits near 4.95 percent after the Fed’s September rate increase. A 5.3 percent dividend yield leaves a spread of roughly 35 basis points over risk-free income, a thin premium by historical standards for REITs.
The stock has climbed roughly 13 percent this year, which compresses the yield as the price rises. It trades near the middle of its 12-month range of $55.86 to $67.93. Income buyers face a choice: accept the slim spread or wait for a pullback toward the low end of the range.
Dollar impact for income investors
At recent prices near $61, $100,000 buys roughly 1,640 shares of Realty Income. That position generates about $445 each month, or roughly $5,340 per year, at the new dividend rate. The same $100,000 in a 10-year Treasury at 4.95 percent yields about $4,950 annually, with no monthly payment schedule and no growth in the payout.
What to watch
Three items matter next. AFFO growth against the 4.1 percent historical rate. Occupancy holding above 98 percent. And the Treasury yield, which sets the bar every income stock must clear. Investors who want the October 15 payment must own the shares before the September 30 record date.
Bottom line
The 136th increase keeps a remarkable streak alive, and the 74 percent AFFO payout says the dividend is secure. The question is price, not safety. At a 5.3 percent yield and a 35 basis point spread over Treasuries, Realty Income rewards patience more than enthusiasm.
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