1 Magnificent Real Estate Dividend Stock Down 9% to Buy and Hold Forever

Realty Income (O 1.60%) has one of the most reliable records of paying dividends in the real estate investment trust (REIT) sector. It has increased its monthly dividend 131 times since its public market listing in 1994, including the past 111 quarters in a row. That's more than three decades of annual dividend increases. With shares currently about 9% below their 52-week high, the dividend yield sits around 5.5%. That's an appealing entry point. With more dividend growth ahead, Realty Income is a great real estate stock to buy and hold for a potential lifetime of dividend income. Image source: Getty Images. Down despite its solid performance Realty Income is having a good year. The REIT generated $2.11 per share of adjusted funds from operations (FFO) during the first half of 2025. That's due to the solid performance of its legacy portfolio. Same-store rent growth has averaged 1.2% (above its guidance of around 1%), while occupancy has averaged 98.6% (in line with its forecast of over 98%). The REIT has also secured $2.5 billion of new investments, putting it ahead of its initial pace to invest $4 billion this year. This solid performance has enabled Realty Income to continue increasing its dividend. It has raised its payment four times already this year and by a total of 3.7% over the past 12 months. The company's strong start to the year gave it the confidence to increase its full-year outlook. Realty Income now expects its investment volume to be around $5 billion. That drives its view that it will produce between $4.24 and $4.28 per share of adjusted FFO this year, up slightly from its initial $4.22- to $4.28-per-share forecast. The 9% decline in Realty Income's stock price from the peak has it trading below $59 per share. That puts the REIT's valuation at less than 14 times its adjusted FFO. That's an attractive level compared to other REITs in the S&P 500, which trade at an average of 18 times FFO. A massive growth runway Realty Income has grown into the sixth-largest global REIT by steadily acquiring additional properties. It currently owns over 15,600 properties in nine countries worth about $61 billion. Its portfolio includes retail (79.9% of its annual base rent), industrial (14.6%), gaming (3.1%), and other properties (2.4%). The REIT has enhanced its ability to continue growing over the years by expanding into new investment verticals. For example, it has entered the U.K. and several European countries, opening the doors to an $8.5 trillion investment opportunity. That move has really paid off. Europe accounted for 76% of the company's investment volume in the second quarter as it found an abundance of higher-returning investment opportunities in that region. Realty Income has also expanded into new investment verticals in the U.S., including casino properties and data centers. Those moves expanded its total addressable market opportunity by an estimated $900 billion. Add in its core U.S. retail and industrial platforms, and Realty Income sees a combined investment opportunity worth a staggering $14 trillion. The company has one of the best balance sheets in the REIT sector, giving it ample financial flexibility to continue making acquisitions. Realty Income has also recently launched a private capital fund in the U.S., further enhancing its access to acquisition capital. Investments made through the fund will earn management fee income, further enhancing its investment returns. With so much growth still ahead, Realty Income should be able to continue expanding its portfolio and dividend in the coming decades. A forever income stock Realty Income has been a magnificent dividend stock over the decades. It's in a strong position to continue growing its dividend in the future. With its share price down, now's a great time to buy this top-tier real estate dividend stock and hold it for a potential lifetime of dividend income.