It might seem like a daunting time to buy more stocks. The S&P 500 looks historically expensive at 29 times earnings, and the intensifying macro headwinds and geopolitical conflicts could spark a rotation toward more conservative investments.
However, one stock that is still worth buying in this turbulent market is Realty Income (O +0.94%), one of the world's largest real estate investment trusts (REITs) with more than 15,500 properties across the U.S., the U.K., and seven European countries. Let's review the four key reasons it's an evergreen play for income-seeking investors.
Image source: Getty Images.
1. High occupancy rates in a rough market
As an equity REIT, Realty Income acquires a large portfolio of properties, leases them to businesses, and distributes that rental income to its investors. It must pay out at least 90% of its pre-tax income as dividends to maintain a lower tax rate.
To support those dividends, Realty Income needs to maintain high occupancy rates across its portfolio. Its occupancy rate has never dipped below 96% since its IPO in 1994, and its year-end occupancy rate hit 98.6% in 2023, 98.7% in 2024, and 98.9% in 2025. It achieved that expansion even as several of its top tenants struggled with store closures.
NYSE: O
Key Data Points
2. Reliable monthly dividends
Realty Income is one of the few REITs that pay monthly dividends instead of quarterly ones. It's also raised its payout 133 times since its IPO, and currently pays a high forward yield of 5%.
REITs gauge their profitability with their adjusted funds from operations (AFFO) per share rather than their earnings per share (EPS). Realty Income's AFFO per share rose 2% in 2023, 5% in 2024, and 2% to $4.28 in 2025. For 2026, it expects its AFFO per share to grow another 2%-3% to $4.38-$4.42. That will easily cover its forward dividend rate of $3.24 per share.
3. It will profit from lower interest rates
When interest rates soared in 2022 and 2023, Realty Income struggled as it became more expensive to buy new properties. Its tenants also faced tougher macro headwinds, while higher yields on risk-free CDs and T-bills made its dividends less attractive.
But after the Fed cut its benchmark rates six times in 2024 and 2025, more investors rotated back toward high-quality REITs like Realty Income. That trend could continue if Kevin Warsh, President Trump's nominee for the next Fed chair, succeeds Jerome Powell this May.
4. An attractive valuation
At $65, Realty Income trades at just 15 times this year's AFFO estimate. That low valuation, along with its high yield and stable growth, makes it a great stock to buy right now -- even amid geopolitical tensions and volatile commodity prices that are rattling the broader markets.
