Realty Income (NYSE: O) is not a particularly exciting dividend stock, but that's exactly why long-term income investors should find it so appealing. This slow and steady real estate investment trust (REIT) can provide a strong foundation for a passive income portfolio. Here are five key facts to know about Realty income if you are thinking about buying it.

Realty Income owns properties and leases them out to tenants, which is pretty simple to understand. However, its tenants have agreed to pay for most property-level operating costs. Tenants are happy to do this because it allows them to control the upkeep of what are generally vital business assets, like retail stores.

But there's another factor to consider here, because many of the properties Realty Income buys are acquired through sale/leaseback deals. In this way, the REIT is basically providing capital to companies that they can use to invest in their businesses or strengthen their balance sheets. 

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Source Fool.com