Meet the Unstoppable Dividend Stock Crushing the S&P 500 in 2026

Yahoo Finance ·

The S&P 500 is up about 9% year-to-date, putting it on track for another year of double-digit gains. That strong return is a high hurdle for a dividend-paying stock to overcome. However, that's just what Realty Income ( O 0.81% ) has done this year. The real estate investment trust ( REIT ) has gained over 16.5%, while its dividend has driven the total return to more than 19.5%. Here's what's driving this unstoppable dividend's stock 's market-crushing total returns in 2026. Realty Income's main draw is its dividend income. The REIT pays a monthly dividend that currently yields about 4.9% (roughly four times the S&P 500's 1% dividend yield). That high-yielding dividend has proven unstoppable over the years. Realty Income has declared 673 consecutive monthly dividends throughout its history. The REIT has raised its payout 135 times since its public market listing in 1994, including for the past 115 consecutive quarters, growing it at a 4.1% compound annual rate. The primary factor driving dividend growth is new investments. Realty Income buys billions of dollars in income-producing real estate each year, which grows its adjusted funds from operations (AFFO) per share. The REIT currently expects to invest about $9.5 billion this year (up from $6.2 billion last year), which should grow its AFFO to $4.41-$4.44 per share, a 3% to 3.7% increase from last year.

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Realty Income has outperformed the market in 2026, recording a total return of 19.5% compared to the 9% gain of the S&P 500. A high dividend yield of 4.9% and 115 consecutive quarters of dividend increases are strong attractions for investors. With $9.5 billion in aggressive real estate investments this year, AFFO per share is projected to grow by more than 3%.

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