The stock market is highly volatile. Amid this uncertainty, income investors are seeking stability. Dividend stocks provide that stability, especially those with consistent payouts. 

One such reliable dividend payer is Realty Income, a real estate investment trust (REIT). It owns over 15,627 real estate properties under long-term net lease agreements in nearly 91 industries. It offers investors exposure to a stable, cash-flow-generating business model that values consistency and predictability, which is often advantageous in a volatile market.

With an attractive yield of 5.9%, a stable record of consistent dividend payouts, and a recession-resilient business model, Realty Income offers a compelling investment case in 2025. The stock is up 2.1% year-to-date, compared to the broader market gain of 0.1%. 

Let’s find out if this dividend stock is a buy now.

About Realty Income

Realty Income is a triple-net lease REIT, meaning its tenants pay the property taxes, insurance, maintenance, and other property-related expenses. 

This structure protects the company from many operational costs while providing consistent, recurring revenue. The weighted average remaining lease term exceeds nine years, and occupancy rates are typically above 98%. Furthermore, a diverse tenant base, the majority of which are in recession-resistant industries such as convenience retail, drugstores, and logistics, shields the company from industry-specific risks. Tenants include CVS Pharmacy (CVS), Dollar General (DG), 7-Eleven, MGM (MGM), and FedEx (FDX), among others.

Dividend Appeal: The Monthly Dividend Company

Realty Income yields 5.9%, which is higher than the real estate sector's average of 4.46%. While high yields are appealing, the consistency of dividend payments is an important criteria to consider when choosing dividend stocks. This explains whether the dividend payments are reliable. Realty Income’s brand is built on monthly dividends, which is a rare feature in the investing world. Since going public in 1994, it has distributed over 659 consecutive monthly dividends. This monthly dividend structure appeals to retirees, income investors, and those who view dividends as a critical component of financial independence.

It has increased its dividend for over 30 years in a row, establishing itself as a Dividend Aristocrat. This title is given to companies that have increased their dividends for at least 25 consecutive years. In March, Realty Income declared a slight increase in its monthly dividend to $0.2685 per share.

Strong Fundamentals Can Sustain the Dividends

In the most recent first quarter of 2025, total revenue of $1.38 billion increased 9.5% year over year. Adjusted funds from operations (AFFO), like net income in non-REITs, determines how much money can be paid out as dividends. In Q1, AFFO rose 2.9% to $1.06 per share. 

Realty Income does not simply sit on its portfolio; it actively expands. The company has spent the last few years acquiring high-quality assets that will generate incremental AFFO growth and long-term value. In the first quarter alone, the company completed 50 acquisitions. 

The company’s forward AFFO dividend payout ratio is 75.5%, which is slightly higher. However, if Realty Income’s AFFO continues to grow, dividend payments will be sustainable. Furthermore, as a REIT, Realty is legally required to pay out 90% of its taxable income in dividends, making its dividends extremely reliable. Analysts expect its funds from operations to increase by 6.2% in 2025, followed by another 3.06% increase in 2026. 

Is Realty Income Stock a Buy on Wall Street?

Overall, Wall Street analysts are generally neutral to bullish on Realty Income stock, rating it a “Moderate Buy.” Of the 23 analysts that cover the stock, five recommend a “Strong Buy,” one rates it a “Moderate Buy,” and 17 say it is a “Hold.” The mean target price for the stock is $60.87, which is 11% above current levels.  The Street-high estimate of $68 implies upside of 26% over the next 12 months. 

For those seeking durable monthly income, capital preservation, and steady total returns, Realty Income stock remains one of the most reliable dividend stocks now.