Is O or PM a better dividend investment in 2026?

O currently yields 5.97% with a 3.2% 5-year dividend growth rate. PM yields 4.27% with 2.8% growth. The better choice depends on your goal: O offers higher current income, while O is better for long-term compounding. Use the DRIP calculator above to model your specific scenario.

What is the dividend yield difference between O and PM?

O has a forward dividend yield of 5.97% (3.12/share annually). PM yields 4.27% (5.40/share annually). The yield gap is 1.70 percentage points.

How much would $10,000 in O vs PM pay in dividends per year?

With $10,000 invested: O would pay approximately $597/year in dividends. PM would pay approximately $427/year. With DRIP reinvestment over 10 years, these amounts grow substantially due to compounding.

O vs PM Dividend Comparison 2026

Q: Does O or PM pay monthly dividends?

O pays monthly dividends. PM pays quarterly dividends. Monthly payers are preferred by investors who want regular cash flow to cover living expenses.

O dividend yield: 5.97%. PM dividend yield: 4.27%. Nicknamed 'The Monthly Dividend Company', Realty Income is a net-lease REIT with 15,000+ properties across the US and Europe. It has paid monthly dividends for 55+ consecutive years with 126 dividend increases since 1994 — a true Dividend Aristocrat. Its tenants include Walgreens, Dollar General, and FedEx. A cornerstone holding for income investors. Philip Morris International operates outside the US with an accelerating shift to smoke-free products. IQOS heated tobacco and ZYN nicotine pouches now represent 40%+ of revenue. PM has raised its dividend 16+ consecutive years since spinning off from Altria in 2008. The company targets $15B+ in smoke-free revenues by 2030.

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O vs PM: Dividend Comparison 2026

O yields 5.97% · PM yields 4.27% · See full DRIP projection below

vsEnter any two US tickers

After 10 years · $10,000 invested · DRIP enabled

🏆 PM wins by $19.3K in total portfolio value

INVESTMENT

TIME HORIZON10 years

Realty Income Corporation

5.97%

Share price

$52.30

Annual div

$3.12

5Y div CAGR

3.2%

Payout ratio

76%

After 10 yrs · $10,000 · DRIP

Portfolio value

$22.7K

Annual income

$1,416.15

Full O calculator →

Philip Morris International

4.27%

Share price

$126.50

Annual div

$5.40

5Y div CAGR

2.8%

Payout ratio

84%

After 10 yrs · $10,000 · DRIP

Portfolio value

$42.0K

Annual income

$721.58

Full PM calculator →

Portfolio growth — O vs PM

Annual dividend income

MetricOPM

Forward yield	5.97% ✓	4.27%
Annual dividend / share	$3.12	$5.40 ✓
Payout ratio	76% ✓	84%
1-year div growth	2.8%	3.9% ✓
5-year div CAGR	3.2% ✓	2.8%
Portfolio after 10y	$22.7K	$42.0K ✓
Annual income after 10y	$1,416.15 ✓	$721.58
Total dividends collected	$9.6K ✓	$5.8K
Payment frequency	monthly	quarterly
Sector	REIT	Consumer Staples

Year-by-year: O vs PM ($10,000, DRIP)

Year	O Portfolio	O Income/yr	PM Portfolio	PM Income/yr	Gap
1	$10,826	$615.65	$11,679	$438.83	$853.00 → PM
2	$11,727	$673.66	$13,596	$468.73	$1.9K → PM
3	$12,710	$737.59	$15,781	$499.06	$3.1K → PM
4	$13,785	$808.08	$18,267	$529.79	$4.5K → PM
5	$14,961	$885.87	$21,093	$560.89	$6.1K → PM
6	$16,247	$971.76	$24,301	$592.34	$8.1K → PM
7	$17,655	$1,066.66	$27,939	$624.14	$10.3K → PM
8	$19,197	$1,171.57	$32,059	$656.28	$12.9K → PM
9	$20,888	$1,287.65	$36,723	$688.76	$15.8K → PM
10	$22,743	$1,416.15	$41,999	$721.58	$19.3K → PM

O vs PM: Complete Analysis 2026

O — REIT

Nicknamed 'The Monthly Dividend Company', Realty Income is a net-lease REIT with 15,000+ properties across the US and Europe. It has paid monthly dividends for 55+ consecutive years with 126 dividend increases since 1994 — a true Dividend Aristocrat. Its tenants include Walgreens, Dollar General, and FedEx. A cornerstone holding for income investors.

Full O Calculator →

PM — Consumer Staples

Philip Morris International operates outside the US with an accelerating shift to smoke-free products. IQOS heated tobacco and ZYN nicotine pouches now represent 40%+ of revenue. PM has raised its dividend 16+ consecutive years since spinning off from Altria in 2008. The company targets $15B+ in smoke-free revenues by 2030.

Full PM Calculator →

Frequently Asked Questions

Is O or PM better for dividend income in 2026?

O currently offers a 5.97% yield (3.12/share/year) while PM offers 4.27% (5.40/share/year). O provides higher current income. However, O has grown its dividend faster (3.2% 5Y CAGR), which may lead to better long-term income through compounding.

How much would $10,000 in O vs PM earn per year?

With $10,000 invested today: O pays approximately $597/year. PM pays approximately $427/year. With DRIP reinvestment over 10 years, these grow to $1,416/year (O) and $722/year (PM).

Does O or PM pay monthly dividends?

O pays monthly dividends. PM pays quarterly dividends. O pays monthly, which is preferred by investors who need regular cash flow.

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⚠️ Educational purposes only. Not financial advice. All projections use historical data; actual results will vary.