Top Dividend Stocks for Conservative Investors: Reasons They Outperform Bonds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 02 2025
0mins
Should l Buy O?
Source: NASDAQ.COM
REITs as Investment Options: Real Estate Investment Trusts (REITs) provide a bond-like income through steady dividends while also offering equity-like returns, making them a smart addition to a diversified portfolio without increasing risk.
Performance Comparison: Historically, REITs have outperformed traditional stocks and bonds, delivering an average annual total return of 12.6% since 1972, and even outperforming a classic 60/40 stock-bond portfolio.
Investment Strategies: Investors can either build a portfolio of individual high-quality REITs, such as Realty Income, or opt for a REIT ETF like the Vanguard Real Estate ETF for broader exposure and lower fees.
Caution on Recommendations: While Realty Income is highlighted as a strong REIT, it was not included in a recent list of the top 10 stocks recommended by the Motley Fool, which emphasizes the importance of considering various investment options.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy O?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on O
Wall Street analysts forecast O stock price to fall
11 Analyst Rating
3 Buy
7 Hold
1 Sell
Hold
Current: 64.780
Low
60.00
Averages
62.59
High
67.50
Current: 64.780
Low
60.00
Averages
62.59
High
67.50
About O
Realty Income Corporation is a real estate investment trust. The Company is engaged in acquiring and managing freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients. It is engaged in a single business activity, which is the leasing of property to clients, generally on a net basis. That business activity spans various geographic boundaries and includes property types and clients engaged in various industries. The Company owns or holds interests in approximately 15,621 properties located in all 50 United States (U.S.) states, the United Kingdom, France, Germany, Ireland, Italy, Portugal, and Spain with clients doing business in 89 industries. Its property types include retail, industrial, gaming and others, such as agriculture and office. Its primary industry concentrations include grocery stores, convenience stores, dollar stores, drug stores, home improvement, restaurants-quick service and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Opportunities in Coca-Cola and Realty Income Amid Market Sell-Off
- Coca-Cola Sales Growth: In 2025, Coca-Cola's sales grew by 5% after adjusting for foreign currency effects and acquisitions, with price/mix contributing 4 percentage points and concentrate sales adding 1 percentage point, indicating sustained brand strength and market share growth despite inflationary pressures.
- Coca-Cola Dividend History: Coca-Cola has raised its dividend for 63 consecutive years, with the most recent increase exceeding 5%, and a payout ratio of 67% suggests the company has ample profits to support its dividends, making it attractive for long-term investors.
- Realty Income Stability: Realty Income reported an occupancy rate of nearly 99% in the third quarter and achieved a 3.5% rental rate increase on expiring leases, demonstrating resilience in the face of online retail threats and economic cycles.
- Realty Income Dividend Performance: Realty Income boasts a 5% dividend yield and has raised its dividends multiple times over the past 113 quarters, highlighting its stable cash flow as a REIT and its appeal to income-seeking investors.
See More
Three Dividend Stocks to Hold for 20 Years
- AbbVie's Dividend Growth: AbbVie (ABBV), a Dividend King, has raised its dividend for 54 consecutive years, with a current yield of 3.1%, demonstrating its ability to rebound from patent expirations and maintain growth, making it a solid hold for the next 20 years.
- Coca-Cola's Stability: Coca-Cola (KO) is also a Dividend King, having increased its dividend for 63 years, with a yield of 2.6%, as the company has successfully adapted to market changes, marketing 30 brands with annual sales exceeding $1 billion, and is expected to continue its dividend increases.
- Realty Income's High Yield: Realty Income (O), while not a Dividend King, has raised its dividend for 30 years, boasting a yield over 5%, with Q3 adjusted funds from operations at $1.08 per share, significantly above the $0.807 in dividends paid, indicating strong funding capabilities for its dividend program.
- Low Volatility Investment Choice: Realty Income has a beta of 0.5 since its NYSE listing in 1994, reflecting low volatility, and combined with its high dividend yield, it presents an excellent long-term investment option for those seeking stable income.
See More
Realty Income: A Stable High Dividend Investment
- Dividend Stability: Realty Income has raised its dividend at least once a year since 1994, currently offering an annual dividend of $3.24 per share, which reflects the company's strong performance in sustaining profitability and cash flow, thereby enhancing investor confidence in long-term holdings.
- High Occupancy Rate: The company owns over 15,500 single-tenant properties, with tenants including well-known brands like Home Depot and Dollar General, ensuring a nearly 99% occupancy rate that provides a stable income source for shareholders.
- Market Discount Advantage: Realty Income's stock is currently trading over 20% below its all-time high, which not only boosts its dividend yield to 5% but may also attract more investor attention, potentially driving future stock price increases.
- Interest Rate Environment Impact: With the Federal Reserve cutting interest rates recently, lowering credit costs, more real estate deals are expected to become profitable, which could further enhance Realty Income's profitability and shareholder returns, solidifying its position as a high-yield stock.
See More
Realty Income's Sustainable High Dividend Yield
- Dividend Yield Advantage: Realty Income's 5% dividend yield is more than four times the S&P 500 average of 1.2%, attracting significant investor interest, although such high yields may raise sustainability concerns.
- Stable Income Source: The company owns over 15,500 single-tenant net-leased properties with a high occupancy rate of 99%, ensuring steady cash flow, and its tenant list includes reputable companies like Home Depot and Dollar General, enhancing income reliability.
- Strong Financial Performance: In Q3 2025, Realty Income reported $4.20 per share in funds from operations, significantly exceeding the $3.24 per share dividend payout, indicating strong payment capacity and the ability to sustain dividends.
- Favorable Market Environment: Recent interest rate cuts by the Fed have lowered credit costs, expected to enhance the profitability of real estate transactions, potentially driving up Realty Income's stock price and further solidifying its appeal as a high-dividend stock.
See More
Risks of High Dividend Yields in REITs
- Dividend Yield Analysis: Realty Income boasts a 5% dividend yield, significantly higher than the S&P 500's 1.2%, which, while attractive, raises concerns about the sustainability of such payouts.
- Stable Income Source: With over 15,500 single-tenant properties and a 99% occupancy rate, Realty Income ensures a steady cash flow, bolstered by tenants like Home Depot and Dollar General, enhancing revenue reliability.
- Financial Health: In Q3 2025, Realty Income reported $4.20 per share in funds from operations, comfortably covering its $3.24 per share dividend, indicating strong financial health and the ability to maintain dividend payments.
- Market Environment Impact: Realty Income's stock trading over 20% below its all-time high, combined with recent Fed rate cuts, has increased its dividend yield, potentially attracting more investors and providing upward momentum for future stock price appreciation.
See More
The Allure of Passive Income Investments
- Infrastructure Investment Returns: Brookfield Infrastructure generated $2.6 billion in cash flow last year, paying out about 75% in dividends, with a current yield of 3.6%, which is three times that of the S&P 500, demonstrating its stable cash flow and long-term growth potential.
- Consistent Dividend Growth: Enterprise Products Partners increased its dividend by 2.8% over the past year, extending its growth streak to 27 consecutive years, and expects to invest at least $2.5 billion in expansion projects this year to support future cash flow and dividend growth.
- Stability of REITs: Realty Income has declared dividends for 667 consecutive months since its inception, increasing payouts every year for 31 years, with a current yield of 5%, showcasing its strong financial health and ability to sustain growth.
- Diversified Investment Strategy: Realty Income strategically invests in high-quality logistics and gaming properties, leveraging a $14 trillion market opportunity to ensure future income growth, thereby supporting its ongoing dividend policy.
See More
Investment Opportunities in Coca-Cola and Realty Income Amid Market Sell-Off
- Coca-Cola Sales Growth: In 2025, Coca-Cola's sales grew by 5% after adjusting for foreign currency effects and acquisitions, with price/mix contributing 4 percentage points and concentrate sales adding 1 percentage point, indicating sustained brand strength and market share growth despite inflationary pressures.
- Coca-Cola Dividend History: Coca-Cola has raised its dividend for 63 consecutive years, with the most recent increase exceeding 5%, and a payout ratio of 67% suggests the company has ample profits to support its dividends, making it attractive for long-term investors.
- Realty Income Stability: Realty Income reported an occupancy rate of nearly 99% in the third quarter and achieved a 3.5% rental rate increase on expiring leases, demonstrating resilience in the face of online retail threats and economic cycles.
- Realty Income Dividend Performance: Realty Income boasts a 5% dividend yield and has raised its dividends multiple times over the past 113 quarters, highlighting its stable cash flow as a REIT and its appeal to income-seeking investors.
See More
Three Dividend Stocks to Hold for 20 Years
- AbbVie's Dividend Growth: AbbVie (ABBV), a Dividend King, has raised its dividend for 54 consecutive years, with a current yield of 3.1%, demonstrating its ability to rebound from patent expirations and maintain growth, making it a solid hold for the next 20 years.
- Coca-Cola's Stability: Coca-Cola (KO) is also a Dividend King, having increased its dividend for 63 years, with a yield of 2.6%, as the company has successfully adapted to market changes, marketing 30 brands with annual sales exceeding $1 billion, and is expected to continue its dividend increases.
- Realty Income's High Yield: Realty Income (O), while not a Dividend King, has raised its dividend for 30 years, boasting a yield over 5%, with Q3 adjusted funds from operations at $1.08 per share, significantly above the $0.807 in dividends paid, indicating strong funding capabilities for its dividend program.
- Low Volatility Investment Choice: Realty Income has a beta of 0.5 since its NYSE listing in 1994, reflecting low volatility, and combined with its high dividend yield, it presents an excellent long-term investment option for those seeking stable income.
See More
Realty Income: A Stable High Dividend Investment
- Dividend Stability: Realty Income has raised its dividend at least once a year since 1994, currently offering an annual dividend of $3.24 per share, which reflects the company's strong performance in sustaining profitability and cash flow, thereby enhancing investor confidence in long-term holdings.
- High Occupancy Rate: The company owns over 15,500 single-tenant properties, with tenants including well-known brands like Home Depot and Dollar General, ensuring a nearly 99% occupancy rate that provides a stable income source for shareholders.
- Market Discount Advantage: Realty Income's stock is currently trading over 20% below its all-time high, which not only boosts its dividend yield to 5% but may also attract more investor attention, potentially driving future stock price increases.
- Interest Rate Environment Impact: With the Federal Reserve cutting interest rates recently, lowering credit costs, more real estate deals are expected to become profitable, which could further enhance Realty Income's profitability and shareholder returns, solidifying its position as a high-yield stock.
See More
Realty Income's Sustainable High Dividend Yield
- Dividend Yield Advantage: Realty Income's 5% dividend yield is more than four times the S&P 500 average of 1.2%, attracting significant investor interest, although such high yields may raise sustainability concerns.
- Stable Income Source: The company owns over 15,500 single-tenant net-leased properties with a high occupancy rate of 99%, ensuring steady cash flow, and its tenant list includes reputable companies like Home Depot and Dollar General, enhancing income reliability.
- Strong Financial Performance: In Q3 2025, Realty Income reported $4.20 per share in funds from operations, significantly exceeding the $3.24 per share dividend payout, indicating strong payment capacity and the ability to sustain dividends.
- Favorable Market Environment: Recent interest rate cuts by the Fed have lowered credit costs, expected to enhance the profitability of real estate transactions, potentially driving up Realty Income's stock price and further solidifying its appeal as a high-dividend stock.
See More
Risks of High Dividend Yields in REITs
- Dividend Yield Analysis: Realty Income boasts a 5% dividend yield, significantly higher than the S&P 500's 1.2%, which, while attractive, raises concerns about the sustainability of such payouts.
- Stable Income Source: With over 15,500 single-tenant properties and a 99% occupancy rate, Realty Income ensures a steady cash flow, bolstered by tenants like Home Depot and Dollar General, enhancing revenue reliability.
- Financial Health: In Q3 2025, Realty Income reported $4.20 per share in funds from operations, comfortably covering its $3.24 per share dividend, indicating strong financial health and the ability to maintain dividend payments.
- Market Environment Impact: Realty Income's stock trading over 20% below its all-time high, combined with recent Fed rate cuts, has increased its dividend yield, potentially attracting more investors and providing upward momentum for future stock price appreciation.
See More
The Allure of Passive Income Investments
- Infrastructure Investment Returns: Brookfield Infrastructure generated $2.6 billion in cash flow last year, paying out about 75% in dividends, with a current yield of 3.6%, which is three times that of the S&P 500, demonstrating its stable cash flow and long-term growth potential.
- Consistent Dividend Growth: Enterprise Products Partners increased its dividend by 2.8% over the past year, extending its growth streak to 27 consecutive years, and expects to invest at least $2.5 billion in expansion projects this year to support future cash flow and dividend growth.
- Stability of REITs: Realty Income has declared dividends for 667 consecutive months since its inception, increasing payouts every year for 31 years, with a current yield of 5%, showcasing its strong financial health and ability to sustain growth.
- Diversified Investment Strategy: Realty Income strategically invests in high-quality logistics and gaming properties, leveraging a $14 trillion market opportunity to ensure future income growth, thereby supporting its ongoing dividend policy.
See More
