11 Best Stocks That Pay Monthly Dividends in 2024

6. Realty Income Corporation (NYSE:O)

Number of Hedge Fund Holders: 23

An American real estate investment trust company, Realty Income Corporation (NYSE:O) invests in single-tenant commercial properties in the country. The company is financially robust, with an investment-grade balance sheet. Its large size provides easier access to capital markets, while its strong financial position enables it to secure favorable rates on debt issued for funding growth. In addition, its size and financial stability make it easier to sell stock on Wall Street at attractive prices. The stock surged by over 21% during the third quarter and is down by over 10% in the past 12 months.

While there are many REITs in the US, Realty Income Corporation (NYSE:O) stands out as unique. Over the past 30 years, the company has weathered major events like the dot-com crash, the Great Recession, and the coronavirus pandemic, all while consistently raising its dividend. Even during the toughest year of the Great Recession, its occupancy rates never dropped below 96.6%, and they are currently around 98.7%. In short, the company’s business remains strong, and it has demonstrated its ability to perform successfully even during challenging financial times.

Realty Income Corporation (NYSE:O) is one of the best monthly dividend stocks as the company has consistently raised its payouts since its IPO in 1994. On December 10, the company increased its monthly payout by 0.2%, bringing it to $0.264 per share. This marks the fifth dividend increase this year. As of December 28, the stock has a dividend yield of 6.08%.

Parnassus Investments highlighted Realty Income Corporation (NYSE:O) in its Q3 2024 investor letter. Here is what the firm has to say:

“Realty Income Corporation (NYSE:O) is poised to benefit from lower interest rates. Because its commercial tenants are mostly on 10-year leases, the stock’s steady dividend stream is attractive in the current environment of slow deceleration in the economy with rates coming down. In this favorable backdrop, the company also continues to execute well.”

Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 23 funds held stakes in Realty Income Corporation (NYSE:O), growing from 19 in the previous quarter. The total value of these stakes is more than $163.5 million. With over 1.7 million shares, AEW Capital Management owned the largest stake in the company.