Realty Income (O +1.36%) has been a compounding machine. The real estate investment trust (REIT) has delivered a 13.6% compound annual total return since its 1994 public market listing. A big driver has been its growing dividend. The REIT has raised its payment 135 times, growing it by a 4.1% compound annual growth rate.
The REIT pays a monthly dividend currently yielding 5%. With more dividend growth likely, a $25,000 investment could compound into real retirement income.
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An income compounding machine
Realty Income offers investors a high current income yield that should grow over time. At its current yield, a $25,000 investment would generate about $1,237.50 in annual dividend income. That income stream should steadily grow over the years, given the REIT’s history and its stated mission of investing to “deliver dependable monthly dividends that…
