O vs STAG: Dividend Comparison
Dividend data as of
Realty Income Corporation (O) from Real Estate and STAG Industrial, Inc. (STAG) from N/A offer different dividend profiles for income-focused portfolios. O offers a significantly higher 5.02% yield compared to STAG's 3.77%, a gap of 1.24%. For dividend growth, O leads with a 5-year CAGR of 8.2% versus STAG's 2.8%. Both stocks carry a "Safe" dividend safety rating.
Verdict
Yield Analysis
O yields 1.24% more than STAG. In dollar terms, O pays $3.21/share vs STAG's $1.49/share annually.
Dividend Growth
O: Dividend growth is accelerating — the 3-year CAGR of 11.4% exceeds the 5-year rate of 8.2% and the 10-year rate of 5.6%.
STAG: Dividend growth is accelerating — the 3-year CAGR of 4.9% exceeds the 5-year rate of 2.8% and the 10-year rate of 1.7%.
Dividend Safety
O: The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x.
STAG: The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in O vs STAG today?
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 $38.10 per share, $10,000 buys about 262.5 shares of STAG Industrial, Inc. (STAG). Each share pays $1.49 per year in dividends, so the position starts out generating roughly $390 per year — about $33 a month.
O is the larger income stream from day one: $98 per year more on the same $10,000 invested.
What could $10,000 of O or STAG income look like in 10 years?
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.
STAG Industrial, Inc. (STAG) has raised its dividend about 2.8% a year over the past five years. If that pace held, the $377 per year that $10,000 generates today at the current 3.77% yield would reach $499 per year by 2036 — a 5.0% yield on the original cost.
On those trailing rates, O pays more in 2036: $1,102 versus $499 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would STAG's dividend growth overtake O's higher yield?
It doesn't, on the trailing numbers. Realty Income Corporation (O) yields more today (5.02% vs 3.77%) and has also grown its dividend at least as fast (8.2% vs 2.8% a year over five years). Unless STAG accelerates its raises or O stumbles, STAG never closes the income gap — O wins on both current income and growth.
Can O and STAG afford their dividends?
Realty Income Corporation (O) earns $1.07 per share against $3.21 paid out in dividends — 0.3x coverage (a 3% payout ratio).
STAG Industrial, Inc. (STAG) earns $1.30 per share against $1.49 paid out in dividends — 0.9x coverage (a 1% payout ratio).
STAG'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.
Which fits an early-retirement income portfolio better, O or STAG?
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 $314 a month from STAG Industrial, Inc. (STAG) at 3.77%.
O also leads on dividend growth (8.2% vs 2.8% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: STAG has raised its dividend 1 consecutive year.
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.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $1,798/yr in O vs $722/yr in STAG by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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