The stock market is well off its recent lows, but there are still some attractive places to put money to work, and that's especially true when it comes to dividend stocks. In the real estate sector specifically, there are some excellent stocks worth taking a closer look at right now.
Two of my favorite dividend stocks in my own portfolio are Ryman Hospitality Properties(NYSE: RHP) and Realty Income(NYSE: O). Investors recently got a closer look at how these businesses are doing, and I'm considering adding shares of both companies in May.
Short-term concerns but an excellent business
Ryman Hospitality Properties is a real estate investment trust, or REIT, that specializes in hospitality properties. Specifically, it owns six large-scale hotels that are focused on group events and meeting spaces (five use the Gaylord brand name), as well as a collection of entertainment venues and related assets. At the current stock price, it has a dividend yield just below 5%.
Ryman has been beaten down by more than 20% compared to its late-2025 peak, and it's easy to understand why. Not only did it report disappointing travel demand in the crucial holiday travel season, but Ryman's hotel business is rather cyclical and with the tariff uncertainty, many investors have questions about what the implications could be for international travel.
However, Ryman has a history of producing excellent total returns over the years, and its business is best-in-breed. With about three-fourths of its hotel business coming from group customers (which book years in advance), Ryman has excellent visibility into future revenue and its forward booking activity has remained very strong. Plus, the company is investing heavily into several of its hotels, adding rooms, meeting spaces, and new food and beverage venues, all of which should provide a nice revenue growth tailwind.
It's also worth noting that Ryman just reported its highest first-quarter revenue ever, as well as a record average daily rate (ADR) for future bookings.
There's also the entertainment segment, which owns some iconic performance venues such as the Grand Ole Opry and Ryman Auditorium, as well as the Ole Red dining and entertainment chain and a few other assets. Not only is this part of the business growing fast, but Ryman sees an opportunity to eventually spin it off to unlock maximum value.
Image source: Getty Images.
A great time to buy this stable, long-term winner
I've called Realty Income my favorite all-around dividend stock, and I feel even stronger about that when the stock is 13% below its recent highs and has a 5.7% dividend yield. This REIT owns a portfolio of more than 15,600 properties and is designed for steady, growing income over time.
About three-fourths of Realty Income's tenants are retail in nature, but these are businesses that are either recession-resistant, not vulnerable to e-commerce disruption, or both. Think convenience stores, grocery stores, dollar stores, and quick-service restaurants, just to name a few examples. Tenants sign long-term leases with gradual rent increases and agree to pay the variable costs of property ownership -- taxes, maintenance, and insurance. Realty Income's portfolio is 98.5% occupied, and it's because its business model is designed for stability.
In the most recent quarter, Realty Income grew its adjusted FFO (funds from operations, the REIT equivalent of earnings) by about 3%, and managed to invest $1.4 billion despite a generally difficult growth environment.
The long-term numbers tell how well this business model works. Since its 1994 IPO, Realty Income has delivered a 13.6% annualized total return, handily outperforming the S&P 500. It has increased its dividend for 110 consecutive quarters, at an average annual rate of 4.3%. And it has delivered this performance with significantly less volatility than the average S&P 500 company.
Buy for the long term
As mentioned, I own both stocks in my portfolio. In fact, Realty Income is one of my largest investments. But it's important to point out that I own both as long-term investments. Both can fluctuate over shorter periods, and typically because of factors out of the management team's control, such as interest rates or recession fears. However, I'm confident that in a decade or more I'll be very glad I own both of these stocks, and that those who invest at these levels will be glad they did as well.
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Matt Frankel has positions in Realty Income and Ryman Hospitality Properties. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Ryman Hospitality Properties. The Motley Fool has a disclosure policy.
