I invest for dividend income and cash flow. Today's video highlights a company I own in my personal stock portfolio that pays dividends on a monthly basis. I’m talking about the real estate investment trust (REIT) called Realty Income (O). Every single month, I receive a dividend payout from this stock, adding a lot of fluidity and predictability to my stream of passive income.

While Realty Income is not a core position in my portfolio, it is definitely a solid medium position, and a component of my team that plays a key role. In fact, it's my only position that pays dividends on a monthly basis. At a high level, I love this company because they are shareholder friendly. They are in business to pay monthly dividends, and take a shareholder-first approach.

Also, over the long term, Realty Income has handsomely beaten the S&P 500. When you look at its total return (capital appreciation and dividends), the S&P 500 has been left in the dust. While I invest for passive income (and beating the S&P 500 is not my primary concern), it's sure nice to have a stock with such a great track record.

Lately, REITs (and utilities too) have faced some downward pressure. As interest rates increase, yield investors have other alternatives. Also, as interest rates increase, debt-reliant companies may face some pressure as they refinance their debt. It is my belief that any interest rate risk can be passed along to Realty Income's customers during lease renewal, but we shall see.

In today's video, I cover a lot of ground:
* What is Realty Income?
* What do they do? How to triple net leases (NNN leases) work?
* A look at Realty Income's impressive historical performance.
* A look at some REIT-specific metrics such as years left on lease agreements, portfolio occupancy, and also funds from operation (FFO). (Perhaps my favorite part of the video.)
* Some risk factors with Realty Income – interest rate risk and tenant churn risk.

While today's video is a long one, I wanted to make sure to share insights on this stock because I receive so many questions here about my thoughts on monthly dividend payers. I also receive so many questions about real estate investment trusts (REITs). Today's video is sure to be a subscriber favorite!

Want to connect with me? I'm now on Instagram:
  / ianlopuch  

Want to learn more about my philosophy on monthly dividends? Today's video is actually part two of a two part series. Check out part one here:
   • Generating MONTHLY DIVIDENDS For Earl...  

Want to see my controversial video on how I tend to beat the S&P 500? Check it out:
   • CRUSHING The S&P 500 Index With Divid...  

These days, I also like Southern Company (SO). Due to rising interest rates and some analyst downgrades, I believe it’s on sale. Learn more here:
   • An UNDERVALUED Stock That Yields Over...  

Want to learn more about my 2018 dividend investing goals? Here you go:
   • My TOP 2 Stocks For 2018 (Investing F...  

Disclosure: I am long Realty Income (O), Southern Company (SO), Kimberly-Clark (KMB), and Procter & Gamble (PG). I own all four of these stocks in my portfolio.

Disclaimer: I'm not a licensed investment advisor, and today's video is just for entertainment and fun. This video is NOT investment advice. Also, I'm not a tax advisor and today's video is NOT tax advice. Please talk to your licensed investment advisor before making any financial decisions.

All content on my YouTube channel is (c) Copyright IJL Productions LLC.