Realty Income & Clorox Pay 5% & 4.5% Dividends
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- Realty Income leases roughly 15,500 single‑tenant properties to large corporate tenants such as Home Depot and FedEx, with an occupancy rate of almost 99%.
- Realty Income pays a monthly dividend that totals about $3.25 per share annually, delivering a 5% yield—well above the S&P 500’s 1.2% average.
- Realty Income trades at a price‑to‑earnings ratio of 55, but its 2025 funds‑from‑operations (FFO) of $4.25 per share implies a price‑to‑FFO multiple near 15, limiting downside risk.
- Clorox owns household brands including Glad, Brita, and Purell, and its product mix is considered recession‑resistant, supporting steady sales.
- Clorox offers a dividend of $4.96 per share annually, yielding 4.5%, and trades at a P/E of 18, suggesting a discounted valuation.
- Clorox recently faced a cyberattack and an ERP system transition that weighed on its stock, but the new ERP could boost efficiency and profits.
Why it matters: Income‑focused investors gain a higher‑yielding, lower‑volatility alternative to growth stocks, as Realty Income’s 5% monthly dividend and Clorox’s 4.5% annual payout provide steady cash flow; the companies’ stable tenant base and recession‑resistant products also limit downside risk amid geopolitical uncertainty, while growth‑oriented investors may miss out on potential upside.
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