$1,000 and the Right Dividend Stock: This Is the One to Buy Right Now
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By Selena Maranjian – Apr 26, 2026 at 12:15AM ESTKey PointsRealty Income has a long history of paying -- and increasing -- dividends.It pays its dividends monthly, too.The company is growing on its own and inking deals to help it grow faster. So you've got $1,000 burning a hole in your pocket and you're looking for a great stock to invest in with it. May I suggest Realty Income (O 1.17%)?
Why Realty Income? Well, I like it (and own it) for many reasons. Here are a few. Image source: Getty Images. For starters, it's a real estate investment trust (REIT) -- a company that owns lots of real estate, leasing it to tenants. REITs are required by law to distribute at least 90% of their taxable earnings as dividends, so they tend to be generous dividend payers. Realty Income's dividend yield was recently a fat 5%. On top of that, the company has been paying its dividends for more than 650 consecutive months and has upped its payout 134 times in 32 years. ExpandNYSE: ORealty IncomeToday's Change(-1.17%) $-0.75Current Price$63.33Key Data PointsMarket Cap$59BDay's Range$63.31 - $64.2152wk Range$54.38 - $67.94Volume4.1MAvg Vol6.2MGross Margin48.73%Dividend Yield5.11% With a 5% dividend yield, a $10,000 investment today will generate $500 in annual income -- and that payout will most likely grow over time. If it grows by 4% annually, you're looking at about $740 in annual income in just 10 years. Interestingly, while most dividend payers pay quarterly, this one pays monthly. That's not necessarily a big deal, but if, say, you're in retirement and relying on dividend income for much of your daily needs, it can be handy to have it coming in every month, along with your Social Security benefits. Realty Income's business model is appealing, too: It uses "triple-net leases," which require its tenants to cover real estate taxes, property insurance, and operating expenses. In exchange, its tenants generally receive modest annual rent increases, often around 1%. The company boasts a total compound annual return of 13.3% since it was listed on the New York Stock Exchange in 1994, and a 4.2% compound annual dividend growth rate since then, too. It has around 15,500 properties leased to tenants, and its top tenants include companies such as 7-Eleven, Dollar General, Walgreens, Home Depot, and FedEx. While the company is able to grow organically, buying more properties with the income it generates, it's also been spurring more growth via more creative means. For example, it has inked a $1 billion partnership with alternative investment manager Apollo Global Management -- which will provide funding to buy more properties. It has other joint ventures, as well, and may keep adding more. This should be a quite attractive portfolio candidate for any long-term investors seeking income. (Remember that it's not just retirees who can use the income. Younger investors can always redeploy that money into more stock!) Give it some consideration -- and perhaps consider some other compelling dividend payers, too.Read NextApr 25, 2026 •By Matt DiLalloCould Realty Income Help Turn $100,000 Into a Millionaire‑Level Retirement by 2036?Apr 20, 2026 •By Robin Hartill, CFP8 Best Index Funds to Buy in April 2026Apr 19, 2026 •By Matt DiLallo1 Reason I'd Buy Realty Income Stock and Never Sell Its Monthly Dividend Stream.Apr 19, 2026 •By Will HealyI'd Buy These 3 Dividend Stocks Today and Sleep Easy TonightApr 17, 2026 •By Rachel Warren9 Best Dividend Stocks to Buy and Hold for April 2026Apr 17, 2026 •By Matt Frankel, CFPBest Stocks to Buy Now: Our Buy-and-Hold Picks for April 2026About the AuthorSelena Maranjian is a contributing personal finance and investing expert at The Motley Fool. Selena has produced The Motley Fool’s nationally syndicated newspaper feature since 1997. She is the author of The Motley Fool Money Guide and Investment Clubs: How to Start and Run One the Motley Fool Way, and the co-author of The Motley Fool Investment Guide for Teens and several editions of The Motley Fool Investment Tax Guide. Prior to The Motley Fool, she worked as a high school teacher and public opinion analyst. She holds a master’s degree in teaching from Brown University and a master’s degree in finance from the Wharton School of the University of Pennsylvania.TMFSelenaStocks MentionedRealty IncomeNYSE: O$63.33(-1.17%)-$0.75FedExNYSE: FDX$387.98(-1.20%)-$4.71Home DepotNYSE: HD$335.89(-1.25%)-$4.27Dollar GeneralNYSE: DG$120.71(-1.11%)-$1.35Apollo Global ManagementNYSE: APO$124.26(-0.41%)-$0.51Seven & IOTC: SVNDF$13.00(-2.04%)-$0.27*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.