Here's How Much a $10,000 Investment in Realty Income Will Get You in Monthly Dividends

There may not be a stock that's more synonymous with dividends than Realty Income (NYSE: O).

The real estate investment trust (REIT), which invests primarily in a portfolio of stable, single-lease commercial properties, has been one of the most consistent and highest dividend payers on the market. It even brands itself as the "monthly dividend company" in its marketing materials.

As the slogan says, Realty Income is one of the relatively few stocks that distributes its payouts monthly rather than quarterly. And it has raised its dividends for 32 straight years -- that is, ever since it went public in 1994.

As a REIT, it's required by law to pay out at least 90% of its taxable income in dividends every year, which explains its high yield. Currently, Realty Income pays a monthly dividend of $0.2715 per share, with an annual dividend yield of 5.7% -- which is more than five times higher than the S&P 500's average yield at the moment.

$573 per year in dividend income

If you are looking for dividend income, there are few stocks better and more reliable than Realty Income.

A $10,000 investment in Realty Income right now would buy you about 176 shares at a price of about $57 per share. Each month, those 176 shares would net you about $48 in dividends, based on its current distribution of $0.2715 per share.

If you extrapolated that across 12 months, those 176 shares would generate about $573 per year in dividend income.

That $573 could be pocketed as income, put in the bank, or reinvested back in the stock to provide compound growth over time and boost your total return.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.