12 Best Stocks That Pay Monthly Dividends in 2025

4. Realty Income Corporation (NYSE:O)

Number of Hedge Fund Holders: 23

Realty Income Corporation (NYSE:O), an American real estate investment trust company, invests in single-tenant commercial properties in the country. The company has encountered notable difficulties in recent years, largely driven by rising inflation and higher interest rates. These factors have put substantial pressure on real estate investment trusts (REITs), including Realty Income. Elevated interest rates have led to increased borrowing costs across the sector, diminishing the present value of future earnings and resulting in lower price-to-FFO (Funds From Operations) ratios.

Despite these headwinds, Realty Income Corporation (NYSE:O) maintains a strong financial position and possesses unique advantages that enable it to manage its interest obligations with ease. The REIT consistently increases its FFO per share annually and is currently trading at a valuation about 30% below its historical average. This discount suggests a potential upside of approximately 43% once interest rates begin to decline.

Realty Income Corporation (NYSE:O) currently offers a monthly dividend of $0.264 per share and has a dividend yield of 5.77%, as of February 13. A major strength of the company lies in its solid financial foundation, supported by an investment-grade balance sheet. Its significant scale enhances access to capital markets, enabling it to obtain favorable debt terms for expansion. In addition, the company has steadily raised its dividend payments since its public listing in 1994, which makes it one of the best dividend stocks.