Realty Income vs. Healthpeak: Two Monthly Dividends, Different Risk Profiles

Realty Income and Healthpeak Properties both pay monthly dividends, but investors are choosing between two different kinds of durability. Realty Income brings a longer record of dividend increases and a diversified net-lease portfolio. Healthpeak offers a higher indicated yield and greater exposure to healthcare demand.

Both companies currently cover their distributions with adjusted funds from operations, or AFFO, but the quality of that coverage depends on what happens next in their portfolios and funding costs.

Realty Income's record is the differentiator

Realty Income declared its 676th consecutive monthly common-stock dividend in October 2026. The company has also raised its payout for more than three decades, a record that matters because reliable dividend growth requires repeated access to attractive acquisitions and capital.

In August, Realty Income raised 2026 AFFO guidance to $4.44 to $4.45 a share. The original comparison put its expected 2026 payout ratio near 73%, down from 75% in 2025. Public equity financed only 18% of investment volume through the second quarter, versus a three-year average of 47%, reducing near-term dependence on issuing stock.

That funding shift can support per-share growth, but Realty Income still needs acquisitions to earn returns above its cost of capital. Higher interest rates or weaker property values can narrow that spread.

Healthpeak offers more current income

Healthpeak declared monthly dividends of $0.10167 a share for the third quarter, equal to an annualized $1.22. The company raised 2026 adjusted FFO guidance to $1.73 to $1.77 a share after its second-quarter results. At the midpoint, the dividend represents roughly 70% of guidance.

Healthpeak also reported $3.4 billion of liquidity as of August 3 and used proceeds from its Brookfield joint venture to repay $650 million of senior notes and about $375 million of commercial-paper borrowings. Those steps reduced refinancing pressure while the company expanded its senior-housing exposure.

The trade-off is concentration. Healthpeak's results depend on healthcare-property demand, senior-housing operations, tenant health and government reimbursement policy. Its dividend history also includes past cuts, unlike Realty Income's long sequence of increases.

Which dividend is stronger?

The two shares traded at similar forward AFFO multiples in the original analysis, so the decision rests less on headline valuation than on the kind of risk an investor wants.

Realty Income offers the stronger record and broader tenant and property exposure. Healthpeak offers more immediate income and a slightly wider payout cushion. Investors seeking dependable growth may prefer Realty Income, while those accepting healthcare concentration for a higher current yield may find Healthpeak more attractive.