Why This REIT's 133 Consecutive Dividend Hikes Make It a Passive Income Powerhouse

Realty Income Corporation (NYSE: O) stands apart in the real estate investment trust landscape due to an extraordinary commitment to shareholder returns. Since going public in 1994, the company has executed 133 dividend increases—a frequency and consistency that virtually no other publicly traded company can match.

Financial Foundation Built for Growth

The strength underlying Realty Income’s dividend reliability lies in its robust financial structure. Currently, the monthly payout stands at $0.27 per share, translating to an annualized dividend of $3.24. This represents a yield of approximately 5.6%, significantly outpacing broader market returns.

The company generates substantial cash flows to support these payouts. Adjusted funds from operations (FFO) are projected to reach between $4.25 and $4.27 per share this year, resulting in a dividend payout ratio hovering around 76% of adjusted FFO—a sustainable level that leaves room for reinvestment. Beyond dividend payments, Realty Income is poised to produce $843.5 million in adjusted free cash flow, enabling continuous portfolio expansion.

A Diversified Portfolio Driving Long-Term Growth

Realty Income has evolved into the world’s sixth-largest REIT, operating a portfolio spanning more than 15,500 properties across nine countries. This scale wasn’t built overnight but rather through disciplined capital deployment and strategic acquisitions.

The company’s property mix reflects careful underwriting. Holdings include retail spaces, industrial facilities, gaming properties, and data centers—many anchored by long-term net lease agreements with established corporations. This diversification insulates the portfolio from sector-specific downturns, particularly from e-commerce disruption that has challenged traditional retail REITs.

The REIT maintains an elite balance sheet, ranking among only 10 REITs holding dual bond ratings of A3/A- or higher. This credit quality ensures consistent access to capital markets for growth funding.

Massive Addressable Markets Creating Runway for Future Increases

Realty Income identifies a $14 trillion total addressable market for net lease real estate investments across the U.S. and Europe. This scale of opportunity explains why the company invested $6 billion into new property acquisitions this year alone.

Recent strategic moves underscore the company’s expansion playbook. The 2023 entry into U.S. gaming properties opened a $400 billion sector opportunity, evidenced by an $800 million preferred equity investment in CityCenter Las Vegas (which houses ARIA Resort & Casino and Vdara Hotel & Spa). The company also launched a credit strategy, deploying capital through real estate-backed loans and preferred equity instruments.

International markets present compelling yields. During the third quarter, European investments offered weighted average cash yields of 8%, compared to 7% for U.S. transactions. The company processed $97 billion in deal opportunities while closing only $3.9 billion, reflecting disciplined selectivity in capital allocation.

The 133-Dividend-Increase Track Record Explained

Reaching 133 consecutive dividend increases required not just profitability but a deliberate strategic commitment. The company has raised its monthly dividend for 113 consecutive quarters—a feat no competitor approaches, as most dividend-growing firms announce annual increases rather than quarterly ones.

This consistency stems from predictable cash generation underpinned by long-term lease contracts with investment-grade tenants in recession-resistant sectors. Grocery stores, warehouses, and data centers generate stable rental income relatively immune to economic cycles.

The Income Investor’s Case

For investors prioritizing growing cash distributions, Realty Income offers a distinct value proposition: a monthly dividend that rises with measurable regularity, backed by tangible assets, investment-grade credit ratings, and a massive runway of future growth opportunities. The combination of these factors explains why the 133-dividend-increase milestone represents not a historical curiosity but rather validation of a sustainable business model.

Whether this REIT merits inclusion in a personal portfolio depends on individual risk tolerance, income needs, and time horizon—but the operational track record and financial metrics provide a substantive foundation for consideration.