How to Generate $100 Monthly Passive Income with Realty Income Stock

Realty Income helps fund reliable revenue streams

This stock can help you build your dividend machine. The best part about owning dividend stocks is that you can think of your expenses in terms of how many shares you need to cover a certain expense. For example, suppose you pay $100 per month for car insurance. You might ask, How many shares of a monthly dividend stock like Realty Income (NYSE: O) would I need to pay that bill using passive income?

• It's 390 shares in this case.

If you do it right, you can build your portfolio to generate the funds needed to pay your bills. Eventually, you could reach a point where you spend less time working and more time doing the things you enjoy or maybe just kicking back on a beach somewhere.

Whatever you aim for, consider buying some Realty Income stock to help you achieve it. Here's how it can work.

Realty Income has an ironclad dividend

That reliable cash flow has made Realty Income a dependable dividend stock. The company has paid and raised its dividend for 31 consecutive years. It's also a high-yielder; investors get 5.7% at today's share price.

The dividend payout ratio is also just 71%. Remember how I said cash flow never dipped more than 7% during the pandemic? Yep, that's a 22-point margin of safety in the dividend payout.

The company's dividend hasn't grown very fast, just 3.6% annually over the past five years. However, add its high starting yield of 6.1%, and Realty Income can be an excellent stock to hold and let the dividends pile up over time. Reinvesting the dividends can turbo-charge your portfolio returns, too.