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Realty Income Yields 5.7%. Here's What $2,500 in Yearly Dividend Income Would Cost You.

Realty Income, described as the largest REIT currently yielding above 5%, has paid monthly dividends for more than 56 years, with 676 consecutive monthly payouts. Its latest monthly distribution is $0.2715 per share, or $3.258 annualized, so 768 shares are needed to generate $2,500 a year, which at the $56.89 share price would cost $43,692. The REIT has raised its dividend for 31 consecutive years since going public and boosted its monthly disbursements for 116 straight quarters, backed by more than 15,000 properties largely leased on triple-net terms. Supermarkets and convenience stores, its largest sector at over 20% of the portfolio, are historically recession-resistant, and trailing 12-month distributions are only 75% of funds from operations. The share count needed has fallen over time, from 846 shares five years ago and 1,029 a decade ago.

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