Zacks highlights three REITs with positive earnings surprise potential during Q2 2026 earnings season: Host Hotels & Resorts, Realty Income, and Simon Property Group. All three demonstrate strong fundamentals in their respective sectors (hotels, net lease retail, and shopping centers) with favorable Earnings ESP and Zacks Rank ratings, though headwinds from high interest expenses and tariff pressures are noted.

Realty Income (O), a REIT specializing in brick-and-mortar retail properties, has raised its monthly dividend for the 116th consecutive quarter, extending a 29-year streak of dividend increases. With a 6% forward dividend yield and a 98%+ occupancy rate, the company demonstrates resilience despite retail headwinds. The REIT is also diversifying into data centers to strengthen future growth.

Rising interest rates are pressuring dividend stocks, but three high-yielding companies offer attractive long-term opportunities. PepsiCo (4.7% yield), Realty Income (6% yield), and Energy Transfer (6.5% yield) have all demonstrated consistent dividend growth and are positioned to reward patient investors over the next five years despite current market headwinds.

Realty Income trades at a discount to peers with strong occupancy (98.8%) and a 31-year dividend growth streak, but faces headwinds from modest organic rental growth (1.2%) and rising interest rates that compress investment spreads. The company raised 2026 guidance to $10B in investments and $4.44-$4.45 AFFO per share, though analysts have downgraded earnings estimates recently. The stock carries a Zacks Rank #3 (Hold) rating.

The article provides an analysis of the State Street SPDR S&P Dividend ETF (SDY), a smart beta ETF focused on large-cap dividend aristocrats with consistent 20+ year dividend growth histories. SDY has gained 9.08% year-to-date with a 0.35% expense ratio and $20.71 billion in assets. The fund holds 158 stocks with top exposure in Industrials, Consumer Staples, and Utilities sectors, led by holdings in Verizon, Accenture, and Realty Income.

The article highlights three monthly dividend-paying investments yielding over 5% for income-seeking investors: Realty Income (O), a retail REIT with 31 consecutive years of dividend increases; UDR, an apartment complex owner that recently switched to monthly payouts with a 5.2% yield; and the iShares Preferred and Income Securities ETF (PFF), offering diversified exposure to preferred stocks with a 5.4% yield.

The article recommends four defensive stocks to weather market volatility: Walmart, Realty Income, PepsiCo, and Verizon. These companies are characterized by resilient earnings, long dividend growth histories, and pricing power. Walmart and PepsiCo are Dividend Kings with 50+ years of consecutive increases, while Realty Income has outperformed the S&P 500 in 11 of 13 major corrections since 1994. Verizon offers a high dividend yield with 20 years of consecutive increases.

The author recommends five dividend stocks currently out of favor: PepsiCo, Hormel, Hershey, McCormick, and Realty Income. Despite near-term headwinds from inflation and rising interest rates, the author believes these companies have strong fundamentals, long histories of dividend increases, and will navigate current challenges successfully. He advocates a long-term buy-and-hold approach with dividend reinvestment, ignoring short-term stock price fluctuations.

Johnson & Johnson and Realty Income are recommended as long-term dividend stocks. J&J, a Dividend King with 64 consecutive years of dividend increases, offers defensive healthcare stability through its innovative medicine and medtech businesses. Realty Income, with 136 monthly dividend increases, provides predictable income through its diversified commercial real estate portfolio with strong occupancy and expansion into data centers and private capital partnerships.

Realty Income demonstrates portfolio resilience with 15,588 properties, 98.8% occupancy, and 8.6-year average lease terms. The company achieved a 102.7% rent recapture rate and 3.8% AFFO per share growth. However, shares have declined 14.4% over three months, and the stock carries a Zacks Rank #3 (Hold) with downward EPS estimate revisions.

The article examines four high-yield dividend REITs that could generate $1,000 monthly passive income. AGNC and Annaly are mortgage REITs with yields exceeding 15% but face significant interest rate risk. Realty Income and Vici Properties are equity REITs investing in physical real estate with more sustainable dividends. An average investment of approximately $103,941 across all four stocks would be needed to achieve $12,000 annual dividend income.

The retail REIT industry faces headwinds from elevated borrowing costs, inflation, and consumer caution, but benefits from limited new supply and resilient necessity-based tenants. Zacks highlights Simon Property Group, Realty Income, and Tanger as solid stocks to consider, citing strong occupancy rates, healthy leasing activity, and solid liquidity despite the industry ranking in the bottom 27% of Zacks industries.