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Holding Realty Income REIT in a Roth IRA saves thousands in taxes on monthly dividends.

Market News
16 Oct 2026
24/7 Wall Street
View Source
Bullish
Holding Realty Income REIT in a Roth IRA saves thousands in taxes on monthly dividends.

Realty Income, a REIT paying monthly dividends, yields 5.7% and its dividends are taxed as ordinary income in taxable accounts, leading to significant annual tax bills. Holding Realty Income shares in a Roth IRA makes dividends 100% tax-free after qualifying, saving investors in the 24% tax bracket about $6,840 annually on a $500,000 position. Over time, reinvesting these tax savings can compound to over $200,000 in 20 years, making Roth IRAs highly advantageous for REIT investors. Higher tax brackets benefit even more from holding REITs in tax-advantaged accounts due to the ordinary income tax treatment of REIT dividends.

Realty Income (O) is currently priced at USD 55.80 on Pluang, showing a modest 0.45% gain in the last day. The stock offers a dividend yield of 5.86%, slightly above the 5.7% mentioned in the article. As of Oct 16, 2026 19:51 WIB, the market cap stands at $52.56 billion with a typical hold time of 128 days among Pluang investors.

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