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Interesting article on O:

Dividend Kings
[May/June 2005]
Making the REIT move for dividends and dividend growth

By Steve Bergsman

"For one REIT, the dividend is so important to its market presence that it declares a monthly dividend. In fact, Realty Income Corporation (NYSE: O), which acquires single-tenant retail properties, calls itself the "The Monthly Dividend Company," a slogan it has registered.

The reason Realty Income decided to declare dividends monthly instead of quarterly was for its investors, many of whom were over the age of 60 and viewed dividends as a necessity not a luxury. Also, retail properties are net-leased on 20-year contracts, so the revenue stream is consistent and it's easier to forecast dividends on a monthly basis.

The need for dividends will only get stronger in the years to come, maintains Thomas Lewis, Realty Income's vice chairman and chief executive officer.

"Dividends were out of favor because we went through a 20-year bull market where a huge portion of the population was in their accumulation years. However, over the next 25 years, the baby boomers are aging and the number of people in the 65 to 69-year-old bracket will grow by 100.6 percent. The demand for dividends will rise exponentially....."

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