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Realty Income is boring by design

Realty Income is the largest net lease real estate investment trust (REIT), with a portfolio of over 15,500 properties. A net lease requires the tenant to pay for most property-level operating costs. This keeps Realty Income’s operating costs low and helps to protect it from today’s high inflation. The portfolio, meanwhile, is geographically diversified across North America and Europe. And while most of its properties are single-tenant retail assets, that’s the most liquid piece of the net-lease market. It also owns industrial properties and other unique assets, such as casinos and data centers.

The company’s resilience shows up in multiple areas. For example, during the Great Recession, occupancy never fell below 96%. That means it continued to collect the rent on the vast majority of its properties despite what was happening on Wall Street and Main Street at the time. That resilience in the face of adversity helps explain how Realty Income has increased its dividend annually for 31 consecutive years.

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NYSE: O

Realty Income

Premium Feature

Moneyball Superscore

85/100

Today’s Change

(0.23%) $0.13

Current Price

$55.54

Key Data Points

Market Cap

$52BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.

Day’s Range

$55.08 – $55.66

52wk Range

$55.07 – $67.94

Volume

12M

Avg Vol

6M

Gross Margin

50.82%

Dividend Yield

5.85%

To be fair, Realty Income is a bit of a tortoise, but it comes with a lofty 5.7% yield. In fact, rising interest rates have investors worried about growth, leading to a stock pullback. If you are looking for a resilient, high-yield income stream, this could be your opportunity.

Visa charges transaction fees

Visa’s dividend yield is 0.7%, which is even lower than the S&P 500 index‘s (^GSPC +0.51%) yield. This payment processing company is all about growth. Essentially, it charges a fee every time a card with its brand is used. The fee to safely connect customers with sellers is small, but they add up. In the fiscal third quarter of 2026, the company processed 71.7 billion transactions, which was a 10% year-over-year increase. Revenues came in at $11.6 billion, up 14%.

The key here is that the world continues to move away from cash and toward card-based payments. The growth of e-commerce is helping that trend, since cash isn’t an option online. Even if there were a market downturn or recession, the long-term trends supporting Visa’s business aren’t ly to screech to a halt. And since Visa only processes payments, it doesn’t assume the financial risk that credit card issuers do. It is far more resilient to financial strain than, say, a bank might be.

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NYSE: V

Visa

Premium Feature

Moneyball Superscore

87/100

Today’s Change

(-0.16%) $-0.60

Current Price

$367.38

Key Data Points

Market Cap

$687BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.

Day’s Range

$363.79 – $368.33

52wk Range

$293.89 – $385.57

Volume

4.6M

Avg Vol

7.3M

Gross Margin

77.16%

Dividend Yield

0.73%

Highlighting Visa’s growth is the fact that its dividend has increased at an annualized rate of over 15% over the past decade. That will make it interesting to dividend growth investors, but it really speaks to how powerful Visa’s growth formula is right now. And to sweeten the investment thesis, the price-to-sales and price-to-earnings ratios are currently slightly below their five-year averages, suggesting the stock is attractively priced.

Focus on things other than the market

During a bear market, investors tend to sell stocks indiscriminately. Focusing on stocks with resilient businesses and growing dividends can help you ignore the market’s volatility. Realty Income’s high yield lets you track dividends rather than stock prices. Visa’s fast-growing business and dividend will let you monitor for dividend hikes rather than price swings. There’s no telling when the next stock drawdown will occur, perhaps soon, according to some big banks, but owning Realty Income and Visa can help you sleep well at night when it does.

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About the Author

Reuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.

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