Fewer and Fewer S&P 500 Stocks Yield Over 4%. Here's My Top Pick to Buy Now.

A new market note argues that S&P 500 stocks yielding more than 4% are becoming increasingly rare as share prices rise and dividend yields fall. The piece singles out Realty Income (NYSE: O) as a standout among real estate investment trusts, noting that REITs must generally distribute at least 90% of taxable income as dividends. It says there are about 30 REITs in the S&P 500 and describes Realty Income’s scale—15,500 retail properties—along with high occupancy of 98.8%. For its second quarter, the article cites revenue up nearly 10% to $1.55 billion and adjusted funds from operations up 8% to just over $1 billion, plus 136 dividend increases since its 1994 NYSE listing.