10-Year Treasury Yields Are Back Over 5% After the Fed Raised Rates. 3 Reasons Why This S&P 500 Dividend Stock Is a Better Buy for Long-Term Passive Income Investors

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Why U.S. REITs Like Realty Income Still Matter for SA Investors

With U.S. Treasury yields topping 5%, Realty Income’s steady dividends offer a compelling case for cautious South African investors seeking long-term income.

The recent rise of U.S. 10-year Treasury yields over 5% often tempts investors to favour fixed-income securities. Yet, Realty Income (O), a REIT known as 'The Monthly Dividend Company,' holds appeal beyond the static yield of a Treasury bond. Its diversified property portfolio and consistent dividend hikes—136 increases since 1994—highlight resilience and growth potential. For South African investors, whose local bond yields are under pressure due to inflation and policy uncertainty, investing in a reliable USD dividend payer like Realty Income could diversify income streams and hedge against rand volatility. The partnership with KKR further underpins Realty Income’s ability to innovate and expand into data centers and private capital, areas that may fuel future dividend growth above fixed Treasury coupons. That said, the rand’s fluctuations and increased U.S. interest rate volatility could erode returns when converted, and foreign exchange risk remains a material concern. this is just our opinion and not financial advice