O vs PLD: Dividend Comparison

At $65.62 per share, $10,000 buys about 152.4 shares of Realty Income Corporation (O). Each share pays $3.21 per year in dividends, so the position starts out generating roughly $488 per year — about $41 a month.

At $138.93 per share, $10,000 buys about 72.0 shares of Prologis, Inc. (PLD). Each share pays $4.04 per year in dividends, so the position starts out generating roughly $291 per year — about $24 a month.

O is the larger income stream from day one: $198 per year more on the same $10,000 invested.

Realty Income Corporation (O) has raised its dividend about 8.2% a year over the past five years. If that pace held, the $502 per year that $10,000 generates today at the current 5.02% yield would reach $1,102 per year by 2036 — a 11.0% yield on the original cost.

Prologis, Inc. (PLD) has raised its dividend about 12.5% a year over the past five years. If that pace held, the $288 per year that $10,000 generates today at the current 2.88% yield would reach $936 per year by 2036 — a 9.4% yield on the original cost.

On those trailing rates, O pays more in 2036: $1,102 versus $936 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.

Prologis, Inc. (PLD) yields less today (2.88% vs 5.02%) but has grown its dividend faster — 12.5% vs 8.2% a year over the past five years. If both trends continued, a $10,000 position in PLD would start out-earning the same position in O around 2041 (roughly 15 years from now), paying about $1,687 per year at the crossover. Before that point, O pays more each year; after it, the gap compounds in PLD's favor.

Realty Income Corporation (O) earns $1.07 per share against $3.21 paid out in dividends — 0.3x coverage (a 3% payout ratio).

Prologis, Inc. (PLD) earns $3.45 per share against $4.04 paid out in dividends — 0.9x coverage (a 1% payout ratio).

PLD's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for O if earnings weaken.

For income you need right now, Realty Income Corporation (O) leads: $100,000 invested today pays about $418 a month at the current 5.02% yield, versus $240 a month from Prologis, Inc. (PLD) at 2.88%.

With a decade or more before the income is needed, PLD's faster dividend growth (12.5% vs 8.2% a year) matters more than the starting yield — raises compound into the larger paycheck over time.

On consistency: PLD has raised its dividend 12 consecutive years.

Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.