I own several real estate investment trusts (REITs). They provide me with passive income that I can reinvest and typically increase in value as they grow their earnings and dividends.
One REIT I plan to buy more of in 2026 is Realty Income (O +0.49%). I view it as a forever holding that I never intend to sell. Here's why.
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Built for a lifetime
Realty Income has grown from a single restaurant property in 1969 to a global real estate behemoth with over 15,550 properties across North America and Europe. The company hasn't only grown bigger over the years; it has grown into a better company. It has steadily diversified its platform over the years by adding new geographies, property types, and investment platforms. That diversification has reduced its risk profile while enhancing its growth prospects.
The REIT has grown in size without risking its financial strength. It boasts one of the 10 best credit ratings in the sector. It also maintains a conservative dividend payout ratio (less than 75% of its adjusted funds from operations). Maintaining a fortress financial profile has allowed it to weather the inevitable storms impacting the global economy and real estate sector. As a result, Realty Income has never had to reduce its dividend payment in its more than 30 years as a public company. Instead, the REIT has increased its dividend 133 times since its public market listing in 1994.
NYSE: O
Key Data Points
That steady dividend growth should continue. Realty Income estimates its total addressable investment opportunity is $14 trillion. The company's diversification gives it the flexibility to invest where it sees the best opportunities. For example, it recently established a joint venture to invest over $1.5 billion into developing high-quality logistics real estate. It also recently made its first investment in Mexico and expanded its gaming portfolio through another credit investment.
Realty Income built its business to provide investors with a durable, steadily rising monthly dividend. That's why I plan to hold it forever and collect a lifetime of passive income.
