In outlining her top three financial resolutions for 2026, the author identifies Realty Income (O) as a core holding for dividend growth. She plans to boost projected annual dividend income by 25% through purchases of high-quality, high-yielding stocks, singling out O’s 5.7% dividend yield and its record of 133 consecutive quarterly dividend increases. With O’s monthly distribution model and a compound annual dividend growth rate of 4.2% since its 1994 listing, the REIT is expected to be a primary contributor to her goal of retaining more dividend cash while selectively reinvesting new contributions to hit her year-end target.

During the third quarter of 2025, Realty Income generated total revenue of $1.47 billion, up 10.5% year-over-year, driven by robust rent growth across its retail and commercial property portfolio. Adjusted funds from operations (AFFO) per share rose to $1.08 from $1.05 a year earlier, reflecting strong occupancy rates of 98.7% and a rent recapture rate of 103.5% on re-leased properties. The company’s gross margin of 48.1% underlines its efficient lease structure, while the REIT maintained an investment-grade credit rating (A- from S&P), supporting its continued access to low-cost capital.

Analysts forecast that forthcoming Federal Reserve rate cuts will widen the spread between REIT yields and cash, enhancing Realty Income’s relative appeal. With an A- credit rating and a diversified international footprint, O is positioned to secure financing at lower average interest rates than many peers. This edge enables the REIT to pursue accretive acquisitions and extend tenant lease durations, while preserving flexible capital deployment. A consensus Buy rating and a mid-60s price target reflect expectations that O will capitalize on a falling cost of debt environment to reinforce its monthly dividend stability.