Realty Income

O

Market cap $53B

High-yield CEFs and covered call ETFs lure in investors with juicy yields. However, there are several hidden dangers lurking beneath the surface of many of these funds. There is a better way to generate high-yielding passive income and potential long-term total return outperformance.

There's no such thing as a binary choice (it's got to be option A or B) when it comes to creating monthly passive income.

Realty Income pays a very sustainable monthly dividend. The REIT has an excellent track record of growing its earnings and dividend payments.

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) has underperformed the SPDR S&P 500 ETF (SPY) year-to-date, but November shows a reversal. Several Dividend Aristocrats, including CAH, CAT, CHRW, and ALB, have posted double-digit gains in 2025, while others lag behind. Dividend growth among Aristocrats averages 5.46% for 2025, with most constituents announcing increases, though growth is slightly below 2024 levels.

Eight of the top fifteen Barron's Better Bets (BBB) 'Safer' dividend stocks, including Conagra, Altria, and Verizon, are currently attractively priced for income investors. Analyst forecasts project net gains of 18.44% to 29.95% for the top ten BBB Dogs by November 2026, with an average estimated gain of 22.01%. Stocks are considered 'dogs' when their reliable dividends and lower prices result in higher yields; eight of the top ten are already at ideal pricing levels.

Most stocks are expensive today. But some niche sectors and international stocks remain discounted. I highlight 3 heavily discounted stocks that I am buying this Black Friday.

Energy Transfer trades at one of the lowest valuations in the energy midstream sector. Realty Income trades at a discount to other large-scale REITs.

Realty Income operates on a lucrative triple-net-lease structure. Prologis boasts major clients that rely on its logistics real estate assets.

Johnson & Johnson is a financial fortress with a solid pipeline and portfolio. Coca-Cola has an asset-light model that drives its profitability.

Fears about retail REITs have proven overblown. Realty Income gets about 80% of its rent from retail properties.