Realty Income Reigns as Top Dividend Stock for Passive Income

The article discusses why Realty Income (NYSE: O) is considered the best dividend stock to buy for passive income. The REIT offers a high-yielding monthly income stream, with a yield of over 5%, which is several times higher than the S&P 500's level.

Realty Income has made 674 consecutive monthly dividends throughout its history and has grown its dividend at a 4.1% compound annual rate since going public in 1994. The REIT's features make it an ideal income stock, with a conservative dividend payout ratio of less than 75% and a strong financial profile.

While tech stocks like Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) can make great dividend growth stocks, they do not offer the same level of yield or payment frequency as Realty Income. In fact, Microsoft's current yield is only 0.8%, while Apple's is 0.3%. This means that it will take a long time for investors to receive a meaningful passive income stream from these tech stocks.