10 Reasons to Buy and Hold Realty Income (NYSE: O) for Consistent Dividend Income

Realty Income (NYSE: O) is a top pick for income-oriented investors looking for a reliable and consistent source of dividend income. As one of the world's largest real estate investment trusts (REITs), Realty Income has a proven track record of rewarding its long-term investors with steady income and consistent dividend payments. Here are 10 compelling reasons to consider buying and holding Realty Income for the long haul:

1. High Dividend Payouts: Realty Income pays out most of its profits as dividends, making it an attractive investment for income-oriented investors.
2. Triple Net Lease REIT: By using triple net leases, Realty Income reduces its expenses and maximizes its profits, providing a stable source of income for investors.
3. Diversification: With properties in all 50 U.S. states and several countries in Europe, Realty Income is well-diversified across multiple industries and locations.
4. High Occupancy Rates: Realty Income has consistently high occupancy rates, with an average of 98.5% since its IPO in 1994, indicating its ability to withstand economic downturns.
5. Long-Term Leases: The company's weighted average remaining lease term of 9.1 years provides further insulation from near-term challenges.
6. Monthly Dividends: Realty Income pays its dividends monthly, which sets it apart from many other companies and makes it an attractive choice for retirees and long-term investors.
7. Consistent Dividend Increases: Realty Income has raised its dividend for 110 consecutive quarters, representing a total increase of 258% since 1994.
8. Higher Yield Than 10-Year Treasury: Realty Income's forward dividend yield of 5.65% is higher than the 10-year Treasury's current yield of 4.38%, making it an attractive alternative for income-oriented investors.
9. Lower Interest Rates Boost Profits: As interest rates continue to decline, Realty Income's profits should rise, as it becomes less expensive to take out loans to buy additional properties and the growth of its tenants is not disrupted by higher interest rates.
10. Undervalued: At $57, Realty Income trades at just 13 times this year's adjusted funds from operations (AFFO), making it a great value compared to its all-time high of $64.19 on Aug. 15, 2022, when it was trading at 16 times its AFFO for 2022. In conclusion, Realty Income is a top choice for income-oriented investors looking for a stable and consistent source of dividend income. With its high occupancy rates, long-term leases, and consistent dividend increases, Realty Income is well-positioned to provide steady returns for decades to come.