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Holding Realty Income REIT in a Roth IRA shelters monthly dividends from IRS taxes, boosting investor returns.

Market News
18 Sep 2026
24/7 Wall Street
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Bullish
Holding Realty Income REIT in a Roth IRA shelters monthly dividends from IRS taxes, boosting investor returns.

Realty Income, a REIT paying monthly dividends, distributes cash that is taxed as ordinary income in taxable accounts but is tax-free in a Roth IRA after qualified distribution conditions are met. For example, a $500,000 investment yielding 5.67% generates $27,000 annually; in a 24% tax bracket, $6,480 would go to taxes in a taxable account, but none in a Roth IRA, preserving the full amount for reinvestment. This tax shelter effect compounds over time, significantly increasing long-term returns. Investors are advised to consider holding REITs like Realty Income in Roth IRAs to maximize after-tax income and growth potential.

Realty Income shares are priced at USD 57.19 on Pluang as of Sep 18, 2026 20:11 WIB, showing a slight 0.23% decline in one day. The stock offers a dividend yield of 5.68%, closely matching the example yield in the article. Pluang investors hold Realty Income for an average of 126 days, indicating moderate-term interest in this monthly dividend payer.

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

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 fed...

Market News
Bullish
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Invest $20,000 in 4 dividend stocks to earn about $1,500 in passive income annually.

Invest $20,000 in 4 dividend stocks to earn about $1,500 in passive income annually.

Investing $5,000 each in four high-yield dividend stocks—three net-lease REITs (Realty Income, NNN REIT, Gladstone Commercial) and one venture lender (Hercules Capital)—can generate roughly $1,568 in annual passive income on a $20,000 portfolio. Thes...

Market News
Bullish
1 day ago
VICI Properties offers higher yield than Realty Income but with more tenant risk.

VICI Properties offers higher yield than Realty Income but with more tenant risk.

VICI Properties and Realty Income, two REITs with different portfolios, recently reported earnings highlighting a choice between higher yield and dividend stability. VICI offers a 7.19% yield with faster payout growth but has concentrated tenant risk...

Company Fundamentals
Neutral
1 day ago
Simon Property outperforms Realty Income for Roth IRAs despite a 2020 dividend cut.

Simon Property outperforms Realty Income for Roth IRAs despite a 2020 dividend cut.

Simon Property Group, despite cutting its dividend in 2020 during the pandemic, has outperformed Realty Income in total returns over one, five, and ten years. Realty Income maintained its perfect dividend streak but showed slower growth and lower ret...

Market News
Bullish
3 days ago
Realty Income CFO to speak live at Bank of America's 2026 Global Real Estate Conference

Realty Income CFO to speak live at Bank of America's 2026 Global Real Estate Conference

Realty Income Corporation announced that Jonathan Pong, its Executive Vice President and CFO, will participate in a live roundtable at Bank of America's 2026 Global Real Estate Conference on September 15, 2026. The event will be webcast live and avai...

Market News
Neutral
3 days ago
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