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Holding Realty Income REIT in a Roth IRA avoids federal taxes on monthly dividends, boosting long-term gains.

Market News
17 Sep 2026
24/7 Wall Street
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Bullish
Holding Realty Income REIT in a Roth IRA avoids federal taxes on monthly dividends, boosting long-term gains.

Realty Income pays monthly dividends that are taxed as ordinary income in taxable accounts but are tax-free in a Roth IRA after qualifying withdrawals. For example, a $500,000 investment yielding 5.4% generates $27,000 annually, costing $6,480 in federal taxes at the 24% bracket if held in a taxable account, but zero tax inside a Roth IRA. This tax advantage compounds over time as reinvested dividends buy more shares, significantly increasing long-term returns. Investors should consider placing REITs like Realty Income in Roth IRAs to maximize after-tax income and run Roth conversion calculations for existing taxable holdings.

Realty Income (O) is trading at USD 57.09 on Pluang as of Sep 18, 2026 02:01 WIB, showing a slight 0.10% decline in one day. The stock offers a dividend yield of 5.7%, which complements the article's focus on monthly dividends and tax advantages within a Roth IRA. Pluang data also shows a typical holding period of 126 days, indicating investor confidence in this REIT's steady income potential.

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