Why This Reliable Dividend Stock Deserves a Spot in Your Portfolio Now

Dividend stocks are the tortoises in a market obsessed with crypto hares—slow, steady, and quietly building wealth.

The Unflashy Cash Machine

While traders chase meme coins and DeFi yields, this stock keeps cutting checks like clockwork. No hype, no 100x promises—just predictable payouts that compound while you sleep.

Portfolio Shock Absorber

When Bitcoin crashes 30% in a week (again), these dividends act like financial airbags. The stock's been paying through three recessions—try finding a crypto project with that track record.

The Boring Advantage

Its 'uncool' factor is the secret sauce. Institutional investors park billions here precisely because it's not the next Shiba Inu. Meanwhile, your neighbor's NFT portfolio just got rugged.

Sleep-well asset or dinosaur waiting to be disrupted? Either way, it's the anti-crypto trade—and that might be exactly what your portfolio needs.

Image source: Getty Images.

Another solid quarter

Realty Income generated $947.5 million, or $1.05 per share, of adjusted funds from operations (FFO) during Q2. That compares to $921.1 million, or $1.06 per share, in the same period last year. Its adjusted FFO per share was down slightly due to an increase in its outstanding shares as the REIT issued more stock to fund new investments.

The company's Core portfolio delivers stable income. Realty Income reported nearly $1.2 billion in same-store rental revenues, slightly higher than last year as contractual rental increases offset lease expirations. It released 293 properties to the same tenant and 17 to new clients at an average 3.4% rent increase. It also sold 64 vacant properties (out of 73 total), generating $116.8 million in proceeds and a $38.6 million gain.

Realty Income invested $1.2 billion in new properties at a strong 7.2% weighted average cash yield. Most investments were in Europe (76%), with the rest in the U.S. It spread its investment volume across retail (46.6%), industrial (33%), and other properties (20.4%). That brought its year-to-date investment volume to $2.5 billion.

On track for another solid year

Realty Income's solid first-half showing and robust pipeline of new investment opportunities are driving the REIT to raise its 2025 guidance. It now expects its adjusted FFO to be between $4.24 and $4.28 per share (up from $4.22 to $4.28 per share). That's a roughly 2% increase from last year's level.

The main factor driving the upward revision in its guidance is its success in securing new investments. Its strong first half and robust pipeline of new investment opportunities have the REIT now expecting to invest $5 billion this year. That's a $1 billion increase from its initial guidance.

Realty Income's diversification strategy has enhanced its ability to grow by increasing its investment opportunity set. For example, its expansion into Europe in more recent years has really paid off. Roughly 70% of its investment volume this year has been in Europe. The company has also invested over 20% of its capital in property types other than its CORE retail and industrial focus areas, such as data centers. The company also made nearly $225 million in credit investments this year (real estate-backed loans).

The company's broad investment reach enables it to be highly selective in its investments. Realty Income sourced $43 billion of potential investment opportunities during Q2. That was the highest in its history and matched its volume from the entire previous year. The REIT was very selective (it only closed 2.7% of its sourced volume), only moving forward with the best investment opportunities.

Realty Income's growing portfolio and adjusted FFO per share allow it to continue increasing its dividend. The company has already raised its monthly dividend four times this year (and 131 times since its public market listing in 1994). It has increased its payment by 3.7% over the past year. It still has plenty of cushion, evidenced by its comfortable 76.8% payout ratio at the end of Q2. This has enabled it to produce over $380 million of surplus free cash FLOW through the first half of the year, providing it with additional capital to invest in income-generating properties.

A top-notch dividend stock

With its proven ability to generate growing, stable cash flow, Realty Income provides investors with a reliable and rising dividend that currently yields 5.7%. For those seeking a rare blend of income and steady growth, this REIT is a top-tier choice to consider for any portfolio.