O vs STAG: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | O | STAG |
|---|
| Dividend Yield | 5.02% | 3.77% |
| Annual Dividend | $3.21 | $1.49 |
| 5-Year CAGR | 8.2% | 2.8% |
| Payout Ratio | 3% | 1% |
| Consecutive Years | 0 | 1 |
| Price | $65.62 | $38.10 |
Yield Comparison
Realty Income Corporation (O) currently yields 5.02%, which is attractive for the broader market. That's 1.24% more than STAG Industrial, Inc. (STAG), which yields 3.77%. In dollar terms, O pays $3.21/share annually versus STAG's $1.49/share.
Dividend Growth
Over the past five years, O has grown its dividend at a 8.2% CAGR compared to STAG's 2.8%. 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's dividend safety is rated "Safe." The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x. STAG's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x. Both have similar payout ratios — O at 3% and STAG at 1%.
Income Comparison
A $10,000 investment in O generates approximately $502/year in dividend income, compared to $377/year from STAG — a difference of $125/year. At $100,000, that gap widens to $1250/year.
Verdict
- Best for income: O
- Best for growth: O
Frequently Asked Questions
Which has a higher dividend yield, O or STAG?
Realty Income Corporation (O) has a higher dividend yield of 5.02% compared to STAG Industrial, Inc. (STAG) at 3.77%.
Is O or STAG a better dividend growth stock?
Realty Income Corporation has the stronger dividend growth with a 5-year CAGR of 8.2%, compared to STAG Industrial, Inc.'s 2.8%.
Which is safer for dividend income, O or STAG?
Realty Income Corporation's dividend safety is rated "Safe" while STAG Industrial, Inc. is rated "Safe." The payout ratio of 3% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.3x. The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x.
How much income does $10,000 in O vs STAG generate?
A $10,000 investment in O generates approximately $502/year in dividends, while the same amount in STAG generates about $377/year.
Which has a lower payout ratio, O or STAG?
STAG Industrial, Inc. has a lower payout ratio of 1% compared to Realty Income Corporation's 3%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
O vs STAG: which is better for retirement income?
It depends on your priorities. O for current income, O for dividend growth. Many retirement investors hold both for diversification.
O Dividend Analysis | STAG Dividend Analysis | All Comparisons | Comparison Tool