What makes REITs most interesting for investors is their unique tax structure. They don't pay federal corporate income tax, so investors don't see the earnings taxed twice (most companies pay tax on their profits, and then the investor pays tax on dividends received). And REITs are required by law to pay out at least 90% of their profits to shareholders, so the dividend is usually above average.

Realty Income's dividend yield is 5.5%, which is a full percentage point higher than the average yield for a real estate stock. And the dividend is remarkably consistent -- this month, Realty Income issued its 662nd consecutive monthly dividend and has increased its dividend every quarter for more than 27 years.

Revenue in the second quarter was $1.41 billion, up from $1.34 billion a year ago, although income fell to $196.9 million and $0.22 per share from $256.6 million and $0.29 per share. The stock is up 10% so far this year (versus the S&P 500 's return of 9%), and provides a total return of 12.5% in 2025.

The bottom line

Realty Income isn't the most glamourous stock out there -- high-powered tech stocks Microsoft and Meta Platforms are also offering a small dividend of less than 1%, and also are involved in building AI applications and data centers that are getting a lot of investor attention these days.

But I'm not investing for the glamour. I want consistent returns, and I get that with Realty Income. I think it's the best dividend stock you can buy today, and if you invest only $100 per month, you can quickly build an enviable position and start enjoying a monthly return.

Should you buy stock in Realty Income right now?

Before you buy stock in Realty Income, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

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Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FedEx, Home Depot, Meta Platforms, Microsoft, Realty Income, and Walmart. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy .

The Smartest Dividend Stock to Buy With $100 Right Now was originally published by The Motley Fool