We recently published a list of 12 Highest Dividend Stocks to Buy on Cash App. In this article, we are going to take a look at where Realty Income Corporation (NYSE:O) stands against other highest dividend stocks to buy on cash app.
Technology has seamlessly woven itself into our daily lives in today’s digital era, significantly impacting how we manage finances. The shift from physical wallets to digital platforms is becoming increasingly common. Cash App has become a prominent player in the digital financial space, steadily growing in popularity. This mobile payment service allows users to send, receive, and request money from individuals and businesses alike. Since its launch in 2013, Cash App has become one of the most widely used digital wallets in the US, competing with other platforms like Venmo and Zelle. The Consumer Financial Protection Bureau (CFPB) reported that Cash App now boasts over 56 million accounts, with Block, its developer, earning over 50% of its gross profit from the app in 2023.
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The pandemic served as a catalyst, speeding up the rising trend of app usage, especially in the financial sector. With lockdowns and social distancing measures in place, people increasingly relied on online platforms for shopping, highlighting the importance of contactless payments. This change in consumer habits drove a surge in app usage, enabling a smooth transition to remote and contactless transactions. Zelle, the peer-to-peer money transfer app, reported a 27% increase in network transactions during the first half of 2024, with nearly $500 billion in payments processed. In the first six months of the year, consumers and businesses completed 1.7 billion transactions across 143 million accounts, as reported by Bloomberg.
This mainly highlights the promising future of online payments and their continued growth across upcoming generations. In fact, Block CFO Amrita Ahuja shared with CNBC’s Jim Cramer that Cash App’s payment services are particularly popular among younger consumers. Ahuja pointed out that the Cash App card, a free Visa debit card, has gained significant traction with this demographic. She also highlighted that Cash App successfully engages the younger generation through initiatives like a family program, which enables adults to sponsor accounts for teenagers.
That said, with success comes increased risk. Recently, Cash App has faced challenges, as the CFPB accused the platform of enabling widespread fraud and misleading its users. In 2023, Hindenburg Research, a well-known short seller, claimed that Block had inflated the number of Cash App users and highlighted illegal activities on the app. Block dismissed the report as “factually inaccurate and misleading.” In its enforcement action, the CFPB stated that Block is legally obligated to investigate and resolve disputes regarding unauthorized transactions, but described the company’s efforts as “severely lacking.” Instead, Block reportedly directed users to request their banks to reverse transactions, which Block would subsequently deny. As a result, Block will pay up to $120 million in refunds to consumers, establish a 24-hour customer service program, and pay a $55 million fine.
Across different investment platforms, investors consistently prioritize generating cash flow. This focus on cash generation drives them towards dividend stocks, which are well-known for offering shareholders a steady stream of income.
Our Methodology
For this article, we reviewed multiple reliable websites and videos that discuss dividend stocks available on Cash App. Our goal was to identify stocks that were consistently recommended by credible sources and analyst reports. After analyzing the gathered information, we selected 12 stocks that stood out due to their dividend yields exceeding 4% as of January 21. These stocks are ranked in order of their dividend yields, starting from the lowest. We also considered hedge fund sentiment around each stock using Insider Monkey’s data for Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
25 Biggest Real Estate Companies in the US in 2024
Realty Income Corporation (NYSE:O)
Dividend Yield as of January 21: 5.73%
Realty Income Corporation (NYSE:O) is an American real estate investment trust company that invests in single-tenant commercial properties in the country. The company mainly specializes in purchasing commercial properties, leasing them, and sharing the rental income with its investors. By the end of Q3 2024, the company owned 15,457 properties across all 50 US states, the UK, and six European countries, up from 13,458 properties at the end of 2023. This growth was largely driven by its acquisition of Spirit Realty in January 2024. The company primarily leases its properties to retailers that are resistant to economic downturns. The stock has surged by over 5% since the start of 2025.
Over the last 30 years, Realty Income Corporation (NYSE:O) has successfully weathered major events like the dot-com crash, the Great Recession, and the COVID-19 pandemic, all while consistently increasing its dividend. Even during the peak of the Great Recession, the company’s occupancy rates never dropped below 96.6%, and they are currently around 98.7%. This track record highlights the company’s stability and resilience in challenging economic conditions. A key factor in this stability is Realty Income Corporation (NYSE:O)’s strong financial position, backed by an investment-grade balance sheet. Its large size enables the company to access capital markets more easily, securing favorable debt terms to support its growth.
Realty Income Corporation (NYSE:O) is one of the best Cash App stocks that pay dividends because the company offers monthly dividends to shareholders. On January 14, the company declared a monthly dividend of $0.264 per share, which was in line with its previous dividend. Overall, it has raised its payouts multiple times since its IPO in 1994. As of January 21, the stock has a dividend yield of 5.73%.
The number of hedge funds tracked by Insider Monkey owning stakes in Realty Income Corporation (NYSE:O) grew to 23 in Q3 2024, from 19 in the previous quarter. These stakes are worth over $163.5 million in total. Among these hedge funds, AEW Capital Management was the company’s leading stakeholder in Q3.
Overall, O ranks 3rd on our list of highest dividend stocks to buy on cash app. While we acknowledge the potential for O as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than O but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
