Better Dividend Stock: Realty Income vs. NNN REIT

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Matt DiLallo, The Motley Fool

Wed, March 25, 2026 astatine 9:05 AM CDT 4 min read

Realty Income (NYSE: O) and NNN REIT (NYSE: NNN) person 2 of the champion dividend maturation way records successful the existent property concern spot (REIT) sector. NNN REIT has accrued its dividend for 36 consecutive years, portion Realty Income's streak is up to 31 years successful a row. They besides connection charismatic dividend yields (5.3% for Realty Income and 5.6% for NNN REIT).

Here's a look astatine which of these high dividend REITs is the amended bargain for income investors close now.

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Realty Income and NNN REIT stock immoderate striking similarities. Both absorption connected owning single-tenant net-lease properties. Net leases nutrient precise unchangeable rental income due to the fact that tenants screen each spot operating costs, including existent property taxes, regular maintenance, and gathering insurance. They besides absorption chiefly connected leasing properties to retail tenants. NNN REIT focuses exclusively connected owning retail existent estate, portion 79% of Realty Income's rent comes from retailers.

Both REITs besides person precise beardown fiscal profiles. Realty Income has a fortress equilibrium expanse (A3/A- recognition ratings with a 5.4 times leverage ratio) and a blimpish dividend payout ratio (75.2% astatine the extremity of past year). Meanwhile, NNN REIT's equilibrium expanse is astir arsenic beardown (BBB+/Baa1 recognition ratings and a 5.6x leverage ratio with a sector-leading 10.8-year weighted-average indebtedness maturity). It besides has an adjacent much blimpish payout ratio (68.8%). Both REITs person the fiscal flexibility to proceed investing successful income-producing existent estate.

While determination are galore similarities betwixt these 2 REITs, determination are besides cardinal differences. Realty Income has a overmuch much diversified portfolio. In summation to owning retail properties, it besides invests successful concern (15.4% of its rent), gaming (3.1%), and different properties, specified arsenic information centers (2.4%). Realty Income besides has greater geographic diversification, owning properties successful respective European countries and precocious expanding into Mexico. Realty Income's diversification has fixed it greater flexibility to absorption connected the champion concern opportunities. For example, it invested much heavy successful Europe past year, wherever it achieved higher archetypal weighted-average currency yields. Realty Income besides has much diversified backing sources, having launched a U.S. Private Capital money and respective strategical concern partnerships successful the past year.

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