High-Yielding Realty Income Boasts Reliable Tenant Base

Realty Income (O) is one of the few S&P 500 stocks that yields over 5%. The real estate investment trust boasts a 5.3% dividend yield and has a reputation for reliability. As a retail REIT, Realty Income predominantly leases its properties to retailers like Walmart and Home Depot, making its tenant base highly stable.

The company's portfolio is well-diversified, with over 20% of its assets in grocery and convenience stores. It has also recently entered new industries, including gaming through a sale-leaseback deal with Wynn Resorts, which accounts for 3.1% of the portfolio. Realty Income owns nearly 16,000 properties worldwide and grows by acquiring new properties and smaller REITs.

Despite its solid performance, sentiment remains negative due to elevated mortgage rates. However, if interest rates eventually come down, Realty Income stock is likely to rise. The best time to buy is before prices rise and yields fall, but Realty Income is an excellent choice at any time for investors seeking a high-yielding dividend stock.