High-Yield Stocks for Passive Income Generation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 30 2026
0mins
Source: Fool
- Brookfield Infrastructure: Brookfield Infrastructure currently offers a dividend yield exceeding 4%, significantly higher than the S&P 500's 1.1%, and has increased its dividend annually for 17 years at a 9% compound annual growth rate, with expectations to continue growing at 5% to 9% annually, showcasing its stable cash flows and strong market position.
- Realty Income: Realty Income owns over 15,500 properties and currently yields more than 5%, having raised its dividend 134 times since its 1994 IPO at a 4.2% compound annual growth rate, maintaining growth for 114 consecutive quarters, indicating robust financial capacity and long-term growth potential.
- Verizon Communications: Verizon offers a nearly 6% dividend yield and has raised its dividend for 19 consecutive years, with projected free cash flow of $21.5 billion this year, sufficient to cover its $11.6 billion annual dividend payout, reflecting strong cash flow and solid financial health.
- Core Income Holdings: Brookfield Infrastructure, Realty Income, and Verizon are ideal high-yield stocks that provide investors with stable cash flows and ongoing growth, making them suitable for those looking to start generating passive income.
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Analyst Views on O
Wall Street analysts forecast O stock price to rise
11 Analyst Rating
3 Buy
7 Hold
1 Sell
Hold
Current: 61.820
Low
60.00
Averages
62.59
High
67.50
Current: 61.820
Low
60.00
Averages
62.59
High
67.50
About O
Realty Income Corporation is a real estate investment trust. The Company is engaged in the acquisition, ownership, and management of freestanding commercial properties leased under long‑term net lease agreements to a diversified base of operators, including a blend of investment grade, investment grade equivalent, and other clients. It owns a portfolio of over 15,500 properties in all 50 United States (U.S.) states, the United Kingdom, and eight other countries in Europe. It is engaged in a single business activity, which is the leasing of property to clients, generally on a net basis. That business activity spans various geographic boundaries and includes property types and clients engaged in various industries. Its property types include retail, industrial, gaming, and other. Its industry concentrations include grocery, convenience stores, home improvement, dollar stores, restaurants-quick service, health and fitness, drug stores, automotive service, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Realty Income Corporation Prices €600 Million Senior Notes Offering
- Bond Offering Size: Realty Income Corporation has announced the pricing of €600 million in 3.625% senior unsecured notes at 99.518% of the principal amount, with an effective yield to maturity of 3.716%, providing the company with a stable funding source for future growth.
- Diverse Use of Proceeds: The net proceeds from this offering will be utilized for general corporate purposes, including debt repayment, property acquisitions, and improvements, reflecting the company's proactive strategy in expanding and optimizing its asset portfolio.
- Issuance Timeline: The bond offering is expected to close on July 7, 2026, subject to customary closing conditions, indicating the company's active engagement in capital markets and confidence in future financing.
- Market Participants: The active joint book-running managers for this offering include Barclays, BNP PARIBAS, RBC Capital Markets, Santander, and Wells Fargo Securities, showcasing market trust in Realty Income and its strong reputation among investors.
See More
Reliable Dividends from Real Estate Investment Trusts
- Stable Dividend Growth: Realty Income has paid monthly dividends since its founding in 1969 and has raised its per-share payout every quarter since 1998, with monthly payments increasing from $0.2115 to $0.2710 over the past decade, demonstrating strong shareholder return capabilities.
- High Occupancy Rates: Despite challenges in the retail sector, Realty Income maintains over 98% occupancy due to top tenants like Dollar General and Walmart, with occupancy only dipping to 97.9% during the pandemic in 2020, showcasing the resilience of its business model.
- Market Adaptability: Realty Income is exploring the artificial intelligence infrastructure market by partnering with Digital Realty for new facilities, indicating the company's flexibility and foresight in emerging markets, even though this is not yet a significant business.
- Long-Term Investment Returns: Since its listing on the New York Stock Exchange in 1994, Realty Income has achieved a compound annual return of 13.6%, highlighting its attractiveness as a long-term investment through a combination of dividend growth and capital appreciation.
See More
Realty Income's Resilience Amid Market Challenges and Future Opportunities
- Stable Rental Income: Realty Income's top 20 tenants, including Dollar General, FedEx, Home Depot, and Walmart, enable it to maintain occupancy rates above 98%, with only a slight dip to 97.9% during the pandemic in 2020, demonstrating its strong market adaptability.
- Consistent Dividend Growth: Since its founding in 1969, Realty Income has paid monthly dividends reliably and has increased its per-share payout every quarter since 1998, rising from $0.2115 to $0.2710 over the past decade, reflecting the company's commitment to shareholders and stable cash flow.
- Flexible Market Exploration: Despite challenges in the retail sector, Realty Income is exploring new markets such as artificial intelligence infrastructure by partnering with AI data center operator Digital Realty, showcasing its adaptability and forward-thinking approach in emerging fields.
- Long-Term Investment Potential: While there are other more attractive investment options in the market, Realty Income remains a noteworthy long-term investment candidate due to its stable cash flow and flexible market strategies, especially amidst ongoing changes in the retail industry.
See More
Federal Reserve Holds Rates Steady, Focus on High Dividend Stocks
- Fed Rate Decision: The Federal Reserve decided to keep interest rates steady in its June meeting, with expectations of rate hikes before the year ends, aiming for stabilization by 2027, reflecting a cautious optimism about economic recovery.
- Coca-Cola's Strong Performance: As a 'Dividend King', Coca-Cola has raised its dividend for 50 consecutive years, reporting a 10% organic revenue increase in Q1 2026 and an operating margin rise to 35%, showcasing its resilience and growth potential in an inflationary environment.
- Realty Income's Stability: Realty Income, with nearly 15,600 properties primarily leased to large retail chains, offers a 5.1% dividend yield and has paid dividends for 672 consecutive months, demonstrating its stability amid economic fluctuations.
- Procter & Gamble's Reliability: Another 'Dividend King', Procter & Gamble has raised its dividend for 70 years, with Q3 2026 sales up 7% year-over-year and earnings per share up 6%, ensuring long-term revenue growth through essential consumer products.
See More
Coca-Cola Demonstrates Strong Pricing Power
- Coca-Cola's Pricing Power: As a Dividend King, Coca-Cola has raised its dividend for over 50 consecutive years, demonstrating its ability to increase prices without curbing demand even amid inflation, thereby ensuring stable cash flow and market position.
- Strong Financial Performance: In Q1 2026, Coca-Cola reported a 10% year-over-year increase in organic revenue, with operating margin rising from 32.9% to 35%, indicating the company's capacity to achieve profit growth despite ongoing economic challenges, which bolsters investor confidence.
- Realty Income's Expansion: Realty Income, with nearly 15,600 properties leased to major retail chains, has substantial capital resources, having deployed $72 billion over the past four years to acquire quality properties, ensuring long-term shareholder returns and a stable 5.1% dividend yield.
- Procter & Gamble's Steady Growth: Another Dividend King, Procter & Gamble has raised its dividend for 70 years, with Q3 2026 sales up 7% and earnings per share up 6%, showcasing its strong competitiveness and reliability in the consumer goods market.
See More
Cloud Capital Launches Core Joint Venture Strategy with Realty Income
- Joint Venture Launch: Cloud Capital has announced the launch of its Core Joint Venture Strategy in collaboration with Realty Income and a Global Institutional Investor, with initial investments exceeding $6 billion, focusing on stabilized hyperscale assets in the U.S. and plans for expansion into Europe, showcasing the company's ambition in the digital infrastructure sector.
- Portfolio Advantage: This joint venture leverages Cloud Capital's vertically integrated platform to deliver scalable core exposure in high-barrier geographies, enhancing investment stability and attractiveness through long-duration leases with investment-grade tenants.
- Industry Leadership: Since 2020, Cloud Capital has acquired a portfolio of 30 data center assets valued at over $12 billion, demonstrating its investment capabilities and sector expertise across the data center lifecycle, further solidifying its market leadership.
- Long-Term Value Creation: Realty Income's CEO Sumit Roy emphasized that the joint venture combines high-quality assets with long-term leases, reflecting a disciplined approach to capital allocation and value creation, which is expected to provide sustainable cash flow and returns for investors.
See More
Realty Income Corporation Prices €600 Million Senior Notes Offering
- Bond Offering Size: Realty Income Corporation has announced the pricing of €600 million in 3.625% senior unsecured notes at 99.518% of the principal amount, with an effective yield to maturity of 3.716%, providing the company with a stable funding source for future growth.
- Diverse Use of Proceeds: The net proceeds from this offering will be utilized for general corporate purposes, including debt repayment, property acquisitions, and improvements, reflecting the company's proactive strategy in expanding and optimizing its asset portfolio.
- Issuance Timeline: The bond offering is expected to close on July 7, 2026, subject to customary closing conditions, indicating the company's active engagement in capital markets and confidence in future financing.
- Market Participants: The active joint book-running managers for this offering include Barclays, BNP PARIBAS, RBC Capital Markets, Santander, and Wells Fargo Securities, showcasing market trust in Realty Income and its strong reputation among investors.
See More
Reliable Dividends from Real Estate Investment Trusts
- Stable Dividend Growth: Realty Income has paid monthly dividends since its founding in 1969 and has raised its per-share payout every quarter since 1998, with monthly payments increasing from $0.2115 to $0.2710 over the past decade, demonstrating strong shareholder return capabilities.
- High Occupancy Rates: Despite challenges in the retail sector, Realty Income maintains over 98% occupancy due to top tenants like Dollar General and Walmart, with occupancy only dipping to 97.9% during the pandemic in 2020, showcasing the resilience of its business model.
- Market Adaptability: Realty Income is exploring the artificial intelligence infrastructure market by partnering with Digital Realty for new facilities, indicating the company's flexibility and foresight in emerging markets, even though this is not yet a significant business.
- Long-Term Investment Returns: Since its listing on the New York Stock Exchange in 1994, Realty Income has achieved a compound annual return of 13.6%, highlighting its attractiveness as a long-term investment through a combination of dividend growth and capital appreciation.
See More
Realty Income's Resilience Amid Market Challenges and Future Opportunities
- Stable Rental Income: Realty Income's top 20 tenants, including Dollar General, FedEx, Home Depot, and Walmart, enable it to maintain occupancy rates above 98%, with only a slight dip to 97.9% during the pandemic in 2020, demonstrating its strong market adaptability.
- Consistent Dividend Growth: Since its founding in 1969, Realty Income has paid monthly dividends reliably and has increased its per-share payout every quarter since 1998, rising from $0.2115 to $0.2710 over the past decade, reflecting the company's commitment to shareholders and stable cash flow.
- Flexible Market Exploration: Despite challenges in the retail sector, Realty Income is exploring new markets such as artificial intelligence infrastructure by partnering with AI data center operator Digital Realty, showcasing its adaptability and forward-thinking approach in emerging fields.
- Long-Term Investment Potential: While there are other more attractive investment options in the market, Realty Income remains a noteworthy long-term investment candidate due to its stable cash flow and flexible market strategies, especially amidst ongoing changes in the retail industry.
See More
Federal Reserve Holds Rates Steady, Focus on High Dividend Stocks
- Fed Rate Decision: The Federal Reserve decided to keep interest rates steady in its June meeting, with expectations of rate hikes before the year ends, aiming for stabilization by 2027, reflecting a cautious optimism about economic recovery.
- Coca-Cola's Strong Performance: As a 'Dividend King', Coca-Cola has raised its dividend for 50 consecutive years, reporting a 10% organic revenue increase in Q1 2026 and an operating margin rise to 35%, showcasing its resilience and growth potential in an inflationary environment.
- Realty Income's Stability: Realty Income, with nearly 15,600 properties primarily leased to large retail chains, offers a 5.1% dividend yield and has paid dividends for 672 consecutive months, demonstrating its stability amid economic fluctuations.
- Procter & Gamble's Reliability: Another 'Dividend King', Procter & Gamble has raised its dividend for 70 years, with Q3 2026 sales up 7% year-over-year and earnings per share up 6%, ensuring long-term revenue growth through essential consumer products.
See More
Coca-Cola Demonstrates Strong Pricing Power
- Coca-Cola's Pricing Power: As a Dividend King, Coca-Cola has raised its dividend for over 50 consecutive years, demonstrating its ability to increase prices without curbing demand even amid inflation, thereby ensuring stable cash flow and market position.
- Strong Financial Performance: In Q1 2026, Coca-Cola reported a 10% year-over-year increase in organic revenue, with operating margin rising from 32.9% to 35%, indicating the company's capacity to achieve profit growth despite ongoing economic challenges, which bolsters investor confidence.
- Realty Income's Expansion: Realty Income, with nearly 15,600 properties leased to major retail chains, has substantial capital resources, having deployed $72 billion over the past four years to acquire quality properties, ensuring long-term shareholder returns and a stable 5.1% dividend yield.
- Procter & Gamble's Steady Growth: Another Dividend King, Procter & Gamble has raised its dividend for 70 years, with Q3 2026 sales up 7% and earnings per share up 6%, showcasing its strong competitiveness and reliability in the consumer goods market.
See More
Cloud Capital Launches Core Joint Venture Strategy with Realty Income
- Joint Venture Launch: Cloud Capital has announced the launch of its Core Joint Venture Strategy in collaboration with Realty Income and a Global Institutional Investor, with initial investments exceeding $6 billion, focusing on stabilized hyperscale assets in the U.S. and plans for expansion into Europe, showcasing the company's ambition in the digital infrastructure sector.
- Portfolio Advantage: This joint venture leverages Cloud Capital's vertically integrated platform to deliver scalable core exposure in high-barrier geographies, enhancing investment stability and attractiveness through long-duration leases with investment-grade tenants.
- Industry Leadership: Since 2020, Cloud Capital has acquired a portfolio of 30 data center assets valued at over $12 billion, demonstrating its investment capabilities and sector expertise across the data center lifecycle, further solidifying its market leadership.
- Long-Term Value Creation: Realty Income's CEO Sumit Roy emphasized that the joint venture combines high-quality assets with long-term leases, reflecting a disciplined approach to capital allocation and value creation, which is expected to provide sustainable cash flow and returns for investors.
See More
