10 Stocks that Pay Dividends Monthly

5. Realty Income Corporation (NYSE:O)

Number of Hedge Fund Holders: 19

Realty Income Corporation (NYSE:O) ranks fifth on our list of the best dividend stocks that pay monthly dividends. The American real estate investment trust company mainly invests in single-tenant commercial properties in the country. The stock began to recover in July after experiencing a decline of more than 10% during the first half of the year. The reason for this decline was partly due to the increase in interest rates following the pandemic. With rates still higher than pre-pandemic levels and unlikely to return to those lows anytime soon, the company is well-positioned to take advantage of this new normal. Its year-to-date returns come in at nearly 5%.

The stability of Realty Income Corporation (NYSE:O)’s portfolio continues to support its balance sheet. In the second quarter of 2024, the company maintained a strong occupancy rate of 98.8%, captured 105.7% of the rent on re-leased properties, and achieved same-store rental revenue growth of 0.2%. The portfolio, primarily composed of single-tenant, net-leased properties, helps minimize financial strain. With tenants like Wynn Resorts, Dollar General, and FedEx, the company enjoys a steady revenue stream. In addition, the company manages over 15,000 commercial properties across 89 industries. Its resilience in recessions is evident, with major sectors such as supermarkets and convenience stores that perform well in any economic environment.

On August 15, Realty Income Corporation (NYSE:O) declared a monthly dividend of $0.263 per share, which was consistent with its previous dividend. The company is a Dividend Aristocrat, having raised its dividends for 30 consecutive years. Moreover, it has never missed a monthly payout in over 55 years. The stock has a dividend yield of 5.16%, as of August 29.

At the end of June 2024, 19 hedge funds in Insider Monkey’s database held stakes in Realty Income Corporation (NYSE:O), down from 25 in the previous quarter. These stakes have a total value of more than $135.3 million. Among these hedge funds, AEW Capital Management was the company’s leading stakeholder in Q2.