REIT Comparison
O vs STAG: Which Is the Better Pick in 2026?
A head-to-head comparison of Realty Income Corporation and STAG Industrial covering yield, cost, risk, and income potential.
Data updated August 19, 2026
Best for
- OInvestors who want real-estate income and inflation sensitivity.
- STAGInvestors who want higher current income (8.35% vs 5.21% for O).
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
O has outpaced STAG over the trailing twelve months, posting a 14.27% total return against 10.10%. The picture flips over 10 years, though — STAG has compounded at 8.95% a year, ahead of O at 4.39%. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD | 1Y | 3Y | 5Y | 10Y | Since Apr 2011 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|---|
| O | 12.73% | 14.27% | 9.64% | 3.14% | 4.39% | 9.14% | 18.2% | 0.26 | 0.36 | -19.3% |
| STAG | 0.74% | 10.10% | 5.51% | 1.49% | 8.95% | 13.20% | 21.8% | 0.04 | 0.06 | -24.6% |
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 19, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Apr 2011” measures every fund from April 15, 2011 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Side-by-side snapshot
| Metric | O | STAG |
|---|---|---|
| Full name | Realty Income Corporation | STAG Industrial |
| Issuer | Realty Income | STAG Industrial |
| Last Close | $62.21 as of August 19, 2026 | $36.58 as of August 19, 2026 |
| Distribution yield | 5.21% | 8.35% |
| Distribution Safety Score™ | 100 | 100 |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Monthly | Monthly |
| Underlying index | — | — |
| Objective | A real estate investment trust that invests in freestanding, single-tenant commercial properties subject to long-term net lease agreements. Known as "The Monthly Dividend Company," Realty Income has a long track record of monthly dividend payments and consistent dividend growth. | A real estate investment trust focused on income-producing properties. |
| Asset class | Real Estate | Real Estate |
| Inception date | N/A | N/A |
| Beta | 0.72 | 0.967 |
| Last dividend | $0.2710 | $0.3900 |
| Ex-dividend date | 07/31/2026 | 09/30/2026 |
Bottom lineChoose O if you want real-estate income and inflation sensitivity. Choose STAG if you want higher current income (8.35% vs 5.21% for O).
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Quick verdict
O (Realty Income Corporation) and STAG (STAG Industrial) are both monthly-pay dividend-paying real estate investment trusts (REITs), but they take different approaches.
STAG offers the higher yield at 8.35% vs 5.21% for O. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
Who should choose each?
Choose O
Realty Income Corporation
- Want real-estate exposure for income and inflation sensitivity.
- Prefer lower volatility — a beta of 0.7 vs 1.0 for STAG.
Choose STAG
STAG Industrial
- Want higher current income — STAG yields 8.35% vs 5.21% for O.
- Want real-estate exposure for income and inflation sensitivity.
Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.
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Deep dive
Yield & income
On a $10,000 investment, O would generate roughly $43.42/month, while STAG would produce $69.58/month, at current distribution rates. Both pay monthly distributions.
Strategy & risk
O is a real estate investment trust built around net lease REIT exposure, while STAG is a real estate investment trust built around diversified REIT exposure. Beta is 0.72 for O and 0.967 for STAG, making O the less volatile of the two by this measure.
Security details
O (Realty Income Corporation) is a real estate investment trust. STAG (STAG Industrial) is a real estate investment trust.
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Frequently asked questions
What is the current distribution yield for O and STAG?
O currently distributes 5.21% and STAG 8.35%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.
Is O or STAG better for dividend income?
It depends on your goals. STAG currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between O and STAG?
O (Realty Income Corporation) is a real estate investment trust built around net lease REIT exposure, while STAG (STAG Industrial) is a real estate investment trust built around diversified REIT exposure. They are issued by Realty Income and STAG Industrial respectively.
Can I hold both O and STAG?
Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.
Is O or STAG safer?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: O scores 100, STAG scores 100. Neither has a clear safety edge on that measure. O has also shown lower price volatility (beta 0.72 vs 0.97 for STAG). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.
How much income does $10,000 in O vs STAG generate?
At current rates, $10,000 in O would generate roughly $43.42 per month ($521.00 annually). The same in STAG would produce about $69.58 per month ($835.00 annually).
Which has performed better historically, O or STAG?
O has outpaced STAG over the trailing twelve months, posting a 14.27% total return against 10.10%. The picture flips over 10 years, though — STAG has compounded at 8.95% a year, ahead of O at 4.39%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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O vs STAG — at a glance
Generated August 15, 2026.
Overview
O and STAG are both monthly-dividend REITs investing in commercial real estate, but they differ fundamentally in property focus and portfolio construction. O specializes in long-term net lease agreements on single-tenant freestanding buildings—typically drugstores, quick-service restaurants, and similar retail anchors—where tenants cover property taxes, insurance, and maintenance. STAG targets industrial properties (warehouses, distribution centers, light manufacturing facilities) with a diversified tenant base and broader geographic exposure.
How they differ
The biggest distinction is property type: O is a net lease retail REIT with extreme tenant-level responsibility, while STAG is an industrial REIT with operator-level tenant relationships. That difference cascades into yield: STAG distributes 8.32% versus O's 5.20%, reflecting tighter industrial real estate spreads and O's premium for lower volatility and longer lease structures. O has traded since 1994 with a beta of 0.72, suggesting lower sensitivity to market swings; STAG's beta of 0.967 tracks closer to the broader market. Both pay monthly, but O's longer track record and lease durability position it defensively, while STAG's higher yield reflects higher leverage or lower asset quality premiums typical of industrial REITs in competitive markets.
Who each is best for
O: Fits investors prioritizing capital stability and predictable monthly cash flow over maximum yield, with multi-decade holding horizons and low appetite for interest-rate sensitivity.
STAG: Designed for income-focused portfolios where higher current yield outweighs volatility concerns, and investors can tolerate the cyclicality of industrial real estate leasing and refinancing risk.
Key risks to know
- Interest-rate sensitivity and refinancing risk. Both REITs fund operations and acquisitions via debt; rising rates increase leverage costs and can compress valuations. STAG's higher yield and beta suggest tighter margins relative to its borrowing costs, magnifying refinancing pressure in a rising-rate environment.
- Lease rollover concentration in net lease REITs. O's single-tenant portfolio creates lumpy lease expirations; if a major tenant fails or exits, the property sits vacant until re-leased or sold. Net lease economics rely on stable tenant creditworthiness.
- Industrial real estate cycle exposure. STAG's industrial focus benefits from e-commerce and logistics demand, but is vulnerable to supply oversupply, tenant consolidation, or a logistics slowdown. Class-B and Class-C warehouse rents can compress quickly in a downturn.
- NAV risk at elevated yields. STAG's 8.32% distribution yield exceeds typical industrial REIT dividend growth rates, suggesting some capital return or leverage is funding the payout. If property values decline or debt refinancing costs rise, NAV per share may face pressure.
Bottom line
O appeals to yield-seeking investors who prioritize downside cushion and monthly income stability over maximum current payout; STAG targets those willing to accept higher volatility and reinvestment risk for a meaningfully higher cash distribution. The tradeoff hinges on whether you value O's lower beta and defensive lease structures or STAG's higher yield and industrial real estate tailwinds. Past performance does not predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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The metrics behind this comparison, explained in the Academy.
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