Dividend Aristocrats Ranked By Yield: Top 10

2. Realty Income Corporation (NYSE:O)

Dividend Yield as of June 25: 5.91%

Also known as the monthly dividend company, Realty Income Corporation (NYSE:O) stands second on our list of the best dividend aristocrat stocks. On June 11, the real estate investment trust company raised its monthly dividend by 0.2% to $0.263 per share. This was the company’s 125th consecutive monthly dividend hike since being listed on NYSE in 1994. As of June 25, the stock has a dividend yield of 5.91%.

The stability of Realty Income Corporation (NYSE:O)’s high-quality portfolio continues to support the health of its balance sheet. In the first quarter of 2024, the company’s occupancy remained steady at 98.6%. It achieved a rent capture rate of 104.3% on re-leased properties and generated a same-store rental revenue growth of 0.8%. Along with the steady occupancy rate, the company’s portfolio consists of single-tenant, net-leased properties, which mainly reduces its financial burden. The tenants are high-profile, stable businesses, including Wynn Resorts, Dollar General, and FedEx, ensuring a stable revenue stream.

In the first quarter of 2024, Realty Income Corporation (NYSE:O) reported revenue of $1.2 billion, which showed a 33.4% growth from the same period last year. The company’s cash position also remained strong, which can also be seen through its very strong dividend history. In Q1, its operating cash flow came in at $778.6 million, up from $731.2 million in the prior-year period. The company’s adjusted free cash flow jumped to over $206 million, from $141.4 million in Q1 2023. It is also a reliable option from a dividend point of view because being an REIT, the company is expected to return 90% of its net income to shareholders through dividends in order to avoid paying income tax on its operational profits.

As per 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.