Could Realty Income Help Turn $100,000 Into a Millionaire‑Level Retirement by 2036?

As noted, Realty Income has delivered a 13.3% annualized full instrumentality since its public marketplace listing much than 30 years ago. If the institution delivered that complaint of instrumentality implicit the adjacent 10 years, it would turn a $100,000 concern into astir $350,000. That's good abbreviated of the $1 cardinal target. To scope $1 million, the REIT would request to present a 13.3% annualized instrumentality for 19 years.

Few investments would apt crook $100,000 into a $1 cardinal status nest ovum successful a decade. An concern would request to make a 26% annualized complaint of instrumentality to execute that level of growth, which is rare. For example, lone 2 of the "Magnificent Seven" stocks person delivered an annualized full instrumentality of much than 26% implicit the past 10 years (Tesla and Nvidia).

While Realty Income won't supply you with a millionaire-level status successful a decade, it tin assistance steadily turn your wealthiness implicit the agelong term, mostly by expanding its dividend. The REIT aims to wage a durable, steadily increasing monthly dividend. It has accrued its payout each twelvemonth since its nationalist marketplace listing, including the past 114 consecutive quarters, increasing it astatine a 4.2% annualized rate.

Investing $100,000 successful the REIT contiguous would make implicit $420 successful monthly dividend income astatine the existent outgo complaint and dividend yield, oregon astir $5,060 per year. That income should steadily emergence each 4th arsenic the REIT raises its dividend. Here's a look astatine however overmuch dividend income you'd cod by 2036, assuming the REIT raised its outgo by 4% per twelvemonth (and you didn't reinvest your dividends):

Data source: The author. (NOTE: Based connected Realty Income's existent 5.06% dividend rate.)