As we near the end of 2025, the S&P 500 has seen a significant increase of 16.6% for the year, raising the possibility of a third consecutive year of double-digit gains for the index. While this may sound promising, it’s important for investors to remain cautious and be prepared for potential market volatility in 2026.
One way to protect your portfolio during uncertain times is by investing in dividend stocks. These stocks provide a steady income stream and can help cushion your portfolio against market fluctuations. One top dividend stock to consider adding to your portfolio is Realty Income (NYSE: O).
Realty Income is a real estate investment trust (REIT) that owns and leases properties, with a focus on retail properties. The company has a diverse client base that includes essential retailers like Walmart and CVS, with no single client accounting for more than 3.3% of its total property portfolio. While 80% of its properties are in the retail sector, Realty Income has diversified into other industries such as gaming and industrials, as well as expanding globally to reduce risk.
One of the standout features of Realty Income is its impressive dividend track record. The company pays its dividend monthly and has raised it for 112 consecutive quarters, spanning over 55 years. At the current price, Realty Income offers a dividend yield of 5.5%, making it an attractive option for income-seeking investors.
Before jumping in to purchase Realty Income stock, it’s essential to consider all factors. While Realty Income is a solid dividend stock, it’s worth noting that it did not make it onto the Motley Fool Stock Advisor’s list of the 10 best stocks to buy now. This list includes stocks that the analyst team believes have the potential for significant returns in the future.
It’s important to remember the success stories of past recommendations, such as Netflix and Nvidia, which have seen exponential growth following their inclusion on the list. Ultimately, it’s crucial to conduct thorough research and consider all factors before making any investment decisions.
In conclusion, Realty Income remains a strong dividend stock option for investors looking to add stability and income to their portfolios. With its proven track record and attractive dividend yield, Realty Income could be a valuable addition to your investment portfolio in 2026.
