Realty Income and IBM: Strong Dividend Stocks for the Fourth Quarter

The fourth quarter is approaching, and investors should consider strong dividend stocks with a history of consistent payouts. Two such companies are Realty Income (NYSE: O) and International Business Machines (NYSE: IBM).

Realty Income provides diversification and consistent growth, with over 15,500 commercial properties leased to 1,800 clients across 92 industries. This means that a downturn in one company or industry is unlikely to significantly impact Realty Income's revenue stream.

The company has paid a dividend for 674 consecutive months, and its stock currently has a dividend yield of 5.3%. If the dividend payouts are included in the total return, Realty Income's gain this year is 12.5%.

IBM's stock may seem like an unusual pick, as it's down 20% this year after a poor second-quarter earnings report. However, CEO Arvind Krishna has stated that about a third of the delayed transactions closed in July and will be recorded on the company's Q3 report.