All It Takes Is 336 Shares of Realty Income Stock to Generate $1,000 in Yearly Dividends. Here's Whether the Payout Is Safe.

Realty Income (NYSE: O) often escapes the notice of both investors and average Americans alike. Although many people may not recognize its name, they likely spend time in some of its nearly 15,600 properties regularly.

The company has existed since 1969, and it became a real estate investment trust (REIT) in 1994. It's payout has steadily risen over that 32-year history, and today, one has to buy 336 shares for around $20,600 to generate $1,000 in annual dividend income.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

However, whether that payout is sustainable means understanding its business and how much cash it generates. Let's take a closer look to see whether investors can truly trust its dividend.

Realty Income specializes in net leased, single-tenant commercial properties. Under these arrangements, the tenants cover the costs of maintenance, insurance, and property taxes.

Properties like this have become increasingly popular for some of America's best-known companies. Walmart , Dollar General , and FedEx are among Realty Income's tenants, giving the company a stable revenue base.

Additionally, its properties were 98.8% occupied as of the end of the second quarter of 2026. These consistently high occupancies prompted it to buy or develop more of these properties over the years. The company slightly trimmed its property count in 2025 to unload properties it could not lease, but it has again added properties in 2026. Hence, its property base remains on a long-term growth trajectory.

Realty Income stands out as a dividend payer by making 12 dividend payments annually and even billing itself as the "monthly dividend company."

Moreover, it has raised its dividend every year since the 1994 IPO and typically passes along modest payout hikes every few months. Today's annual dividend stands at just over $3.25 per share, and shareholders benefit from a dividend yield of 4.85%, well over the S&P 500 (SNPINDEX: ^GSPC) average of 1.04%. Also, given the stock's performance over the current decade, the dividend is the primary source of returns.

The good news is that Realty Income's dividend is sustainable. Over the trailing 12 months, it earned $4.27 per share in funds from operations (FFO) income, a measure of the REIT's free cash flow. This is well above the $3.25-per-share dividend, leaving room for payout hikes and investment in the business.