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Realty Income aims to grow monthly dividends after decades of increases
The REIT has raised its dividend 135 times since its 1994 listing, and its current monthly payout yields 5% for investors.
Realty Income, a NYSE-listed real estate investment trust, highlights its track record of compounding income through dividend growth, citing a 13.6% compound annual total return since its 1994 public market debut, according to The Motley Fool.
The article attributes much of that performance to what it describes as sustained dividend expansion, saying Realty Income has increased its payout 135 times and has grown the dividend at a 4.1% compound annual rate over that span.
With the REIT paying a monthly dividend currently yielding 5%, the piece estimates that a $25,000 investment would generate about $1,237.50 in annual dividend income at today’s payout level.
The article lays out two 30-year scenarios based on a 4.1% dividend growth pace, projecting nearly $4,000 in annual dividend income without reinvesting dividends, or more than $58,000 in annual dividends if dividends are reinvested at roughly the current 5% yield, while also noting past results are not a guarantee.