Investors should be cautious of stocks with high dividend yields, as non-REIT dividend stocks can adjust payments at any time. However, Realty Income (NYSE: O), a REIT, offers a 5% dividend yield with a stable tenant base and high occupancy. The company’s FFO income covers its dividend costs, and lower stock prices have contributed to its high yield. With interest rate cuts boosting profits, Realty Income may be a smart dividend stock to buy. Despite the high yield, the company can sustain its dividend, making it an attractive investment option. However, it was not listed among the 10 best stocks to buy by the Motley Fool Stock Advisor team.
Read more at Nasdaq: This Robinhood Stock Has a Trailing 5% Dividend Yield — Is It Too Good to Be True?
