10 Best Dividend Aristocrats with Over 3% Yield

2. Realty Income Corporation (NYSE:O)

Dividend Yield as of July 17: 5.52%

Realty Income Corporation (NYSE:O) is a California-based real estate investment trust company that invests in single-tenant commercial properties in the US. Though the stock has dipped by almost 1% since the start of 2024, interest rates are likely to decrease in the upcoming months. So, the company is well-positioned to benefit from this new normal.

The stability of Realty Income Corporation’s (NYSE:O) high-quality portfolio continues to support its balance sheet. In the first quarter of 2024, the company maintained a steady occupancy rate of 98.6%. It achieved a rent capture rate of 104.3% on re-leased properties and saw a same-store rental revenue growth of 0.8%. The company’s portfolio, consisting of single-tenant, net-leased properties, mainly reduces its financial burden. Tenants include high-profile, stable businesses such as Wynn Resorts, Dollar General, and FedEx, ensuring a reliable revenue stream. In addition, the company has over 15,000 commercial properties across 89 industries. Its resilience during recessions is evident, as its largest sectors include supermarkets and convenience stores, which perform well in all economic conditions.

Realty Income Corporation (NYSE:O) is a reliable option from a dividend point because being a REIT, the company is expected to pay 90% of its net income to shareholders in dividends in order to avoid paying income tax on its operational profits. On July 9, the company declared a monthly dividend of $0.263 per share, which was in line with its previous dividend. It has raised its payouts every year since its listing on the NYSE in 1994, which makes O one of the best dividend aristocrat stocks on our list. As of July 17, the stock has a dividend yield of 5.52%.

According to Insider Monkey’s database of Q1 2024, 25 hedge funds held stakes in Realty Income Corporation (NYSE:O), compared with 27 in the previous quarter. These stakes are worth over $250.5 million in total. With over 1.4 million shares, AEW Capital Management was the company’s leading stakeholder in Q1.