Realty Income (O -0.32%) checks every single box for income-seeking investors. The real estate investment trust (REIT) offers a high-yielding dividend backed by an extremely strong financial profile. It also has a fantastic record of increasing its dividend. On top of all that, it pays its dividend monthly instead of the quarterly schedule of most other dividend stocks.

These and other factors make it the ultimate dividend stock to buy right now for those with a few hundred dollars to invest.

A high-quality, high-yielding dividend

Realty Income’s dividend yield is right around 6% these days. That’s several times higher than the S&P 500‘s dividend yield of around 1.2%. The REIT could turn a $500 investment into about $30 of annual dividend income at that rate. That compares with around $6 of dividend income for a similar investment in an S&P 500 index fund.

That high-yielding payout is on a very strong foundation. Realty Income owns a diversified portfolio of properties that produces very stable rental income. It invests in retail, industrial, gaming, and other properties net leased to many of the world’s leading companies. That lease structure requires that tenants cover all operating costs, including routine maintenance, building insurance, and real estate taxes.

Realty Income pays out a conservative portion of its stable rental income — around 75% of its adjusted funds from operations (FFO) — in dividends. That gives it a comfortable cushion while allowing it to retain hundreds of millions of dollars each year to reinvest in additional income-generating properties. The REIT also has an elite balance sheet, giving it additional financial flexibility to continue expanding its portfolio.

An extremely consistent grower

Realty Income has a phenomenal record of increasing its dividend. It recently delivered its 128th dividend increase since its public market listing in 1994. The REIT is also running streaks of 109 straight quarterly increases and 30 consecutive annual raises. It has grown its dividend at a 4.2% compound annual rate during that three-decade period.

The REIT has also delivered incredibly consistent earnings growth. It has grown its adjusted FFO per share every year except 2009. Overall, it has increased its adjusted FFO by around a 5% annual rate.

Realty Income is in a strong position to continue growing. The landlord estimates it can deliver about 2% annual FFO per share growth from embedded rental increases in existing leases and using its retained cash flow after paying dividends to buy additional income-generating properties. In addition, it can externally fund another 2% to 3% annual growth by issuing more stock and debt to finance further acquisitions. On top of that, the REIT recently launched a private market fund, providing it with an additional growth driver.

There is $14 trillion in commercial real estate suitable for the net lease structure across North America and Europe. Realty Income has been expanding its growth runway by adding new investment verticals, like gaming and data center properties, expanding into additional European countries, and launching credit and private capital investment platforms.

All this for an attractive valuation

Realty Income’s share price has fallen recently, declining more than 15% from its 52-week high. That sell-off has pushed its dividend yield up to around 6%. That’s a historically attractive level and well below its average of less than 5% over the past decade.

The slump also has the REIt trading at a more attractive valuation. It currently sells for about 15 times its earnings. That’s cheaper than the REIT sector average of around 16.

About as good as it gets

Realty Income is the ultimate stock for income investors. It offers a high-yielding monthly payout backed by a very conservative portfolio and financial profile. The REIT has a remarkably consistent growth record, which should continue. On top of all that, it currently trades at an attractive valuation. These factors are why income investors with a few hundred dollars to spare should consider adding this dividend stock to their portfolio, or adding to their position, right now.