"Realty Income (NYSE:O), LTC Properties (NYSE:LTC), and AGNC Investment (NASDAQ:AGNC) pay monthly, so you get 12 checks a year instead of 4. They compound faster and align more naturally with people's spending habits. Plus, REITs are obligated to pay out at least 90% of their earnings as dividends. REITs have single-tenant warehouses, grocery-anchored plazas, medical office parks, and more to lock in long leases with built-in rent bumps."
"Realty Income should be your go-to monthly dividend stock, REITs or not. That's not just because it is called "The Monthly Dividend Company". Realty Income has a very long history of increasing dividend payouts and keeping its earnings stable. So much so that very few dividend stocks can match the reliability of O stock. The tenants themselves are some of the most stable companies you can invest in."
"Recession-resistant tenants with deep pockets are unlikely to miss payments. Realty Income was tested in 2008, where it managed to keep the occupancy rate at 97%. Almost every other real-estate-linked company tanked. O stock pays you a 5.51% dividend yield today. It is a steal below $60, considering the stock used to trade at $75+ in 2022. Once interest rate cuts make Treasuries less attractive, O stock is likely to gain."
Well-run monthly REITs pay dividends monthly, compounding faster and matching spending habits. REITs must distribute at least 90% of earnings as dividends. Property types include single-tenant warehouses, grocery-anchored plazas, and medical office parks, enabling long leases and built-in rent increases that can be passed through to investors quickly. Only a subset of REITs maintain reliable, growing dividends over the long term. The real estate sector has shown resilience to large interest-rate increases and stands to benefit from rate cuts. Realty Income offers a long track record of dividend growth, high occupancy history, and a current yield around 5.5%.
Read at 24/7 Wall St.
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