Looking to supplement your income with Realty Income (NYSE:O) dividends? Aiming for $500 monthly? Here’s how much you need to invest.
Realty Income's Financial Snapshot
As of Jan 17, Realty Income's shares were trading at $57.33. The company, with a market cap of $42 billion experienced a 52-week range between $68.85 and $45.04.
Analyzing Realty Income's Dividend Payouts
During the third quarter of 2023, Realty Income announced a dividend of $0.33 per share, a slight decrease from $0.36 in the same period of 2022. The total dividends paid from January to September 2023 were $0.96, compared to $1.07 in the previous year.
Don't Miss:
Investing in real estate just got a whole lot simpler. This Dara Khosrowshahi-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
Investment Calculations for Desired Dividend Earnings
To consistently earn $500 per month from dividends, you’ll need to invest around $113,208 based on Realty Income's current dividend yield of 5.3%. This calculation is derived from dividing your annual dividend goal ($6,000) by the yield percentage. For a smaller goal of $200 monthly, the investment would be around $45,283.
Fluctuations in Dividend Yields
Let’s take a look at how dividend yield is impacted by stock price movements with a straightforward example. Consider a stock that consistently pays an annual dividend of $4. Initially, the stock is priced at $100, resulting in a dividend yield of 4% (calculated as $4 divided by $100). If the stock price rises to $120, while the dividend stays at $4, the yield reduces to approximately 3.33% ($4 divided by $120). On the other hand, if the stock price drops to $80, the yield would increase to 5% ($4 divided by $80). This example illustrates the inverse relationship between dividend yield and stock prices, assuming the dividend amount remains constant.
Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.
Image Credit: Shutterstock
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
To earn $500 per month in dividends from Realty Income, you would need to own 1,946 shares at the current dividend rate. With a recent share price of $55.45, this would require a total investment of $107,905.70, which may be out of reach for many investors.
SAN DIEGO , March 13, 2024 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced it has declared an increase in the company's common stock monthly cash dividend to $0.2570 per share from $0.2565 per share.
That usually comes in quarterly, semi-annual or annual payments. Shares of public companies that split profits with shareholders by paying cash dividends yield between 2% and 6% a year. With that in mind, putting $250,000 into low-yielding dividend stocks or $83,333 into high-yielding shares will get your $500 a month.
The company's board of directors approve a plan to share those profits in the form of a dividend. A dividend is paid per share of stock. U.S. companies usually pay dividends quarterly, monthly or semiannually. The company announces when the dividend will be paid, the amount and the ex-dividend date.
Realty Income (O -0.78%) is often considered a stable long-term investment for conservative income investors. It's one of the world's largest real estate investment trusts (REITs), and its tenants include large retailers like Walgreens, 7-Eleven, Dollar General, Dollar Tree, and Walmart.
In a market that generates a 2% annual yield, you would need to invest $600,000 up front in order to reliably generate $12,000 per year (or $1,000 per month) in dividend payments.
However, this isn't always the case. If you're looking to generate $300 in super safe monthly dividend income (note the emphasis on "monthly" income), simply invest $43,000, split equally, into the following two ultra-high-yield stocks, which sport an average yield of 8.39%!
For example, if you have an investment or combination of investments with a 9.5% yield, you would have to invest $500,000 or more potentially. This is a high amount, but could almost guarantee you a $4,000 monthly dividend income.
We operate under the highest ethical standards and work tirelessly to provide long-term value to all stakeholders. Since our public listing in 1994, we have delivered compound average annual total shareholder return of 13.6%, outperforming the US REIT sector and the S&P 500 during that timeframe.
Thanks to their market-leading positions and blockbuster drugs, stocks like Novo Nordisk (NYSE: NVO), Eli Lilly (NYSE: LLY), and AbbVie (NYSE: ABBV) are potential dividend goldmines. Here is what you need to know about these three stocks and their ability to pay dividends for decades to come.
To generate $500 a month, you might need to build your investments to $150,000. Taking out 4% each year would amount to $6,000, which comes to $500 a month.
A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.
Realty Income is ranked #87 on the Best Finance Companies to Work For in California list. Zippia's Best Places to Work lists provide unbiased, data-based evaluations of companies. Rankings are based on government and proprietary data on salaries, company financial health, and employee diversity.
Address: 747 Lubowitz Run, Sidmouth, HI 90646-5543
Phone: +99513241752844
Job: Design Supervisor
Hobby: Digital arts, Lacemaking, Air sports, Running, Scouting, Shooting, Puzzles
Introduction: My name is Delena Feil, I am a clean, splendid, calm, fancy, jolly, bright, faithful person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.