Dividend comparison
O vs VNQ: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Realty Income Corporation and Vanguard Real Estate ETF, side by side. Updated October 21, 2026.
O vs VNQ: key differences
The short answer, from the latest data on this page.
- Income. O pays more income, yielding 5.85% over the last twelve months versus 3.69% for VNQ. That is about $215 more a year on $10,000. O pays monthly, VNQ pays quarterly.
- Performance. Over the last 5 years, O returned 4.7% versus -0.3% for VNQ, with dividends reinvested. $10,000 would have grown to $10,470 in O and $9,967 in VNQ.
- Risk. Their worst declines over the last 5 years were similar: -34.5% for O and -34.5% for VNQ from peak to trough.
- Dividend growth. VNQ grew its yearly payout 4.0% a year over the last 4 years, versus 3.9% for O.
Bottom line: O has the edge on these figures, with more income today and stronger 5-year returns. VNQ does not lead on any of the measures compared here.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | O Realty Income Corporation | VNQ Vanguard Real Estate ETF |
|---|---|---|
| Dividend yield (TTM) | 5.85% | 3.69% |
| Dividend / share (TTM) | $3.25 | $3.41 |
| Payout frequency | Monthly | Quarterly |
| Last dividend | $0.2715 on Oct 15, 2026 | $0.8046 on Sep 25, 2026 |
| Ex-dividend date | Oct 30, 2026 | Sep 23, 2026 |
| Next payment | $0.2715 on Nov 13, 2026 | — |
| Dividend growth (CAGR) | 3.9% over 4 yrs | 4.0% over 4 yrs |
| Price | $56.34 | $92.28 |
| Payout ratio (TTM) | 226.9% | — |
| Dividend growth streak | 30 years | 1 year |
| Beta | 0.70 | 0.99 |
| Max drawdown (5Y) | -34.5% | -34.5% |
| Market cap | $53.06B | $66.40B |
| Exchange | NYSE | AMEX |
| Expense ratio | — | 0.13% |
| Assets under management | — | $66.40B |
| Number of holdings | — | 158 |
| Top 10 concentration | — | 43.7% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
O
$48.71/mo
$585 /yr at 5.85% yield
VNQ
$30.76/mo
$369 /yr at 3.69% yield
Dividend history
Total dividends paid per share in each calendar year. O pays monthly; VNQ pays quarterly.
| Year | O | VNQ |
|---|---|---|
| 2025 | $3.2170 | $3.4718 |
| 2024 | $3.1255 | $3.4335 |
| 2023 | $3.0510 | $3.4928 |
| 2022 | $2.9670 | $3.2261 |
| 2021 | $2.7557 | $2.9656 |
Strategy: Alternative income
Income vehicles outside ordinary stocks and bonds: real estate investment trusts, preferred shares, business development companies that lend to private firms, and energy pipeline partnerships. Each is structured to pass most of its earnings through to shareholders, which is why yields are high. Their payouts depend on rents, loan books or pipeline volumes rather than on corporate dividend policy.
These income streams are sensitive to interest rates and credit conditions, and much of the income is taxed as ordinary income rather than qualified dividends.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $10,470 in O and $9,967 in VNQ.
| Period | O | VNQ |
|---|---|---|
| 1 month | -0.07% | -0.68% |
| 3 months | -12.39% | -7.74% |
| Year to date | 3.97% | 4.28% |
| 1 year | -2.00% | 0.21% |
| 3 years | 33.54% | 38.16% |
| 5 years | 4.70% | -0.33% |
- O
- VNQ
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- O
- VNQ
Top 10 holdings
Largest positions by portfolio weight.
Quick verdict
O has the edge on these figures, with more income today and stronger 5-year returns. VNQ does not lead on any of the measures compared here. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how O vs VNQ fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is O or VNQ better for dividend income?
It depends on your goals. O currently yields 5.85% Trailing Twelve Months (TTM) while VNQ yields 3.69%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between O and VNQ?
Realty Income Corporation (O) is a stock listed on NYSE. Vanguard Real Estate ETF (VNQ) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which has performed better, O or VNQ?
Over the last 5 years, O has the higher total return with dividends reinvested: O returned 4.7% and VNQ returned -0.3%. Past performance does not predict future returns.
Which is riskier, O or VNQ?
Measured by the worst peak-to-trough decline over the last five years, VNQ has been riskier: O fell as much as 34.5% and VNQ as much as 34.5%. Their betas are 0.70 and 0.99.
How often do O and VNQ pay dividends?
O pays monthly and VNQ pays quarterly.
How much income does $10,000 in O vs VNQ generate?
At current TTM yields, $10,000 in O would generate roughly $48.71 per month ($585 annually). The same amount in VNQ would produce about $30.76 per month ($369 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both O and VNQ?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare O vs VNQ with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how O and VNQ fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.