If you invested $1,000 in real estate income stocks five years ago, how much would you have now?

Passive income investors love real estate investment trusts (REITs) because their dividends often have high yields and are reliable. REITs are required to pay out 90% of their earnings as dividends, which can result in high payouts.

real estate income (o -0.25%) One of the best. It is a retail REIT and leases properties to the most reliable commodity retailers, so it receives stable rents and pays dividends. It also has the unusual feature of paying monthly dividends, making it even more attractive to some investors. The stock’s most recently declared monthly dividend is $.0.2625 This works out to a net return of approximately 5.7% per share.

Let’s look at how much money you would have today if you invested $1,000 five years ago.

The magic lies in the dividends.

Companies that pay dividends are generally past a high-growth phase. Investors do not expect high profits from the stocks themselves. Broadly speaking, the higher the dividend yield, the lower the expectations for a rise in stock prices.

Realty Income stock is down 4% this year. Yields work inversely with prices, so as Realty Income’s stock price fell, its yields rose. The rate of return based on the current stock price is 5.7%. quadruple that much S&P 500 average.

If you invested $1,000 in Realty Income stock five years ago, after reinvesting the dividends, you would have $1,040 today. This includes an 18% decline in the stock price. The market is not favorable to real estate stocks in a high interest rate environment. Realty Incomes stock’s dividend itself has grown 16% over the past five years.

This stock, along with Realty Income’s solid stability, is popular with dividend investors. The stock has paid a monthly dividend for over 53 years and has increased its dividend 107 consecutive quarters.

For passive income investors, Realty Income is a great choice.