Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDaniel Sparks, The Motley FoolFri, July 17, 2026 at 1:36 AM GMT+2 5 min readTuesday brought the kind of inflation report investors have been waiting on all year. The Consumer Price Index (CPI) rose 3.5% year over year in June, down sharply from 4.2% in May and below economists' expectations, as gasoline prices posted their biggest monthly drop in years. Core inflation, which excludes food and energy, cooled to 2.6% from 2.9%.For most stocks, that's background news. For Realty Income (NYSE: O), one of the market's most rate-sensitive dividend stocks, it's closer to the main event. After a year in which hot inflation kept the threat of Federal Reserve rate hikes alive, the pressure on this real estate investment trust (REIT) may finally be easing.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Here's why I'd consider buying the stock now.Image source: Getty Images.Realty Income calls itself The Monthly Dividend Company, and the numbers back the branding. The company has declared more than 670 consecutive monthly dividends, and it has increased its payout for over 31 consecutive years, making it a member of the S&P 500 Dividend Aristocrats® index (the term Dividend Aristocrats® is a registered trademark of Standard & Poor's Financial Services LLC).In March, the company announced its 114th consecutive quarterly dividend increase, and the monthly dividends it paid during the first quarter were up 1.8% year over year. At about $63 per share, the stock's annualized dividend of about $3.25 works out to a yield just over 5.1%.The business behind the payout is deliberately boring. Realty Income owns 15,571 properties leased to 1,786 clients across 92 industries, mostly under long-term net leases (agreements in which the tenant covers taxes, insurance, and maintenance). The weighted average lease has about 8.7 years remaining. And portfolio occupancy held steady at 98.9% at the end of the first quarter.The dividend is well covered, too. Realty Income paid out about 72% of its first-quarter adjusted funds from operations (AFFO), a common measure of a REIT's cash earnings.AFFO per share rose 6.6% year over year in the first quarter to $1.13, and management raised its full-year guidance to a range of $4.41 to $4.44 -- annual growth of 3% to 3.7%, with the first quarter running ahead of that pace. It's a modest trajectory. It's also exactly what income investors are here for.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info