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10 Real Estate Stocks that Pay Monthly Dividends

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·11 min read
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In this article, we will be taking a look at 10 real estate stocks that pay monthly dividends. To skip our detailed analysis on the real estate industry, you can go directly to see the 5 Real Estate Stocks that Pay Monthly Dividends.

Real estate and real estate investment trusts (REITs) are among the few stocks historically known for generating competitive and attractive total returns. This is partially due to the tendency of these stocks to pay out high and steady dividends, and their returns also benefit from long-term capital appreciation, according to the National Association of Real Estate Investment Trusts (NAREIT). Additionally, another factor making real estate stocks or REITs an attractive investment option is the fact that these stocks' correlation with other assets is relatively low, allowing for them to add more diversity to an investor's portfolio, which in turn reduces risk while increasing returns. As such, investing in real estate stocks or REITs, like Simon Property Group, Inc. (NYSE: SPG), American Tower Corporation (REIT) (NYSE: AMT), Equinix, Inc. (REIT) (NASDAQ: EQIX), and Public Storage (NYSE: PSA), can be a tempting idea for not only conventional investors looking to change things up a bit in their portfolios, but also for income investors looking for steady and high dividend incomes coming from reliable sources.

Perhaps one of the most major benefits of investing in real estate stocks is the fact that these stocks have time and again proven their strength and resilience. Even during times of economic crisis as caused by the rise of the COVID-19 pandemic, the real estate industry has managed to hold on. REITs managed to raise $460 billion in common equity capital up to 2020, for instance, and by the third quarter of 2020, they managed to improve their performance enough for funds from operations (FFO) to begin rising by about 5.6%. And while despite this improvement, the FFO calculated for REITs in the third quarter was still down 22.3% than its value in the third quarter of 2019, hope for a major turnaround was born in the hearts of investors and analysts alike, as far as improvements in real estate were concerned. A major factor contributing to this said hope, for instance, is the fact that as of November 30th, 2020, REITs have also managed to generate a total return of about 50% versus their total return of about -37.6% year to date last March.

The above has resulted in many, like Aberdeen Standard Investments in their report titled "Global Real Estate Market Outlook" for Q3 2021, believing that investors may be returning to real estate as a viable investment option. As the Aberdeen Standard Investments Research Institute estimated that 2021 will witness global economic growth of about 5.7%, while 2022 and 2023 will witness the same of 4.8% and 3.4% respectively, it also commented that investors are seeming more prone to visit assets and increase investment activity in the real estate industry. Within the industry, ASIRI has mentioned that the industrial sector is set to outperform all others, such as the retail and residential sectors, as it has seen the least amount of vacancies since the beginning of the COVID-19 pandemic. However, the whole industry is set to get back on its feet as vaccine rollouts continue and the economy begins to return to normal.

Investing is becoming difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

With that context in mind, let's look at 10 real estate stocks that pay monthly dividends.

Our Methodology

We have used the data of about 866 hedge funds, which we used to pick stocks that are most popular among hedge funds today. The stocks added to our list below also have dividend yields of at least 3% and mostly positive ratings from analysts. Finally, these stocks have strong fundamentals demonstrating financial stability as well. For every stock mentioned below, we have noted their dividend yields and number of hedge fund holders, ranking them from the lowest to the highest dividend yield.

Real Estate Stocks that Pay Monthly Dividends

10. Agree Realty Corporation (NYSE: ADC)

Number of Hedge Fund Holders: 18 Dividend Yield: 3.5%

Agree Realty Corporation (NYSE: ADC) is a real estate investment trust founded in 1971 and based in Michigan. The company works to acquire and develop properties net leased to retail tenants and ranks 10th on our list of real estate stocks that pay monthly dividends.

Ki Bin Kim, an analyst at Truist, raised his price target on shares of Agree Realty Corporation (NYSE: ADC) this July. The new price target is $83 versus the previous $78 target, with Kim also reiterating a Buy rating on shares of Agree Realty Corporation (NYSE: ADC) in light of its Q2 results.

In the second quarter of 2021, Agree Realty Corporation (NYSE: ADC) had an FFO of $0.89, beating estimates by $0.01. The company’s revenue was $82.55 million, up 43.47% year over year and also beating estimates by $0.83 million. Agree Realty Corporation (NYSE: ADC) has also gained 11.36% in the past 6 months and 14.72% year to date.

By the end of the first quarter of 2021, 18 hedge funds out of the 866 tracked by Insider Monkey held stakes in Agree Realty Corporation (NYSE: ADC) worth roughly $200 million. This is compared to 16 hedge funds in the previous quarter with a total stake value of approximately $242 million.

Like Simon Property Group, Inc. (NYSE: SPG), American Tower Corporation (REIT) (NYSE: AMT), Equinix, Inc. (REIT) (NASDAQ: EQIX), and Public Storage (NYSE: PSA), Agree Realty Corporation (NYSE: ADC) is a good stock to invest in.

9. STAG Industrial, Inc. (NYSE: STAG)

Number of Hedge Fund Holders: 17 Dividend Yield: 3.5%

STAG Industrial, Inc. (NYSE: STAG), a REIT specializing in acquiring and operating single-tenant industrial properties in the US, ranks 9th on our list of real estate stocks that pay monthly dividends. The company's investment strategy offers a good balance of income and growth to its investors.

Michael Carroll at RBC Capital raised his price target on STAG Industrial, Inc. (NYSE: STAG) shares this August from $42 to $46. The analyst also reiterated a Buy rating on the shares in light of the company's "strong" Q2 earnings.

In the second quarter of 2021, STAG Industrial, Inc. (NYSE: STAG) had an FFO of $0.52, beating estimates by $0.02. The company’s revenue was $138.43 million, up 17.69% year over year and also beating estimates by $4.07 million. STAG Industrial, Inc. (NYSE: STAG) has also gained 29.36% in the past 6 months and 36.69% year to date.

By the end of the first quarter of 2021, 17 hedge funds out of the 866 tracked by Insider Monkey held stakes in STAG Industrial, Inc. (NYSE: STAG) worth roughly $173 million. This is compared to 25 hedge funds in the previous quarter with a total stake value of approximately $218 million.

Like Simon Property Group, Inc. (NYSE: SPG), American Tower Corporation (REIT) (NYSE: AMT), Equinix, Inc. (REIT) (NASDAQ: EQIX), and Public Storage (NYSE: PSA), STAG Industrial, Inc. (NYSE: STAG) is a good stock to invest in.

8. Realty Income Corporation (NYSE: O)

Number of Hedge Fund Holders: 18 Dividend Yield: 4%

Realty Income Corporation (NYSE: O) is an S&P 500 company that is known for its mission to offer its stockholders a reliable monthly income, resulting in the company often being referred to as the "Monthly Dividend Company." It is a REIT with more than 6,500 real estate properties under its wing and ranks 8th on our list of real estate stocks that pay monthly dividends.

Haendel St. Juste, an analyst at Mizuho, upgraded shares of Realty Income Corporation (NYSE: O) this June from Neutral to Buy. The analyst also has a $77 price target on the stock.

In the second quarter of 2021, Realty Income Corporation (NYSE: O) had an FFO of $0.88, beating estimates by $0.01. The company’s revenue was $464.28 million, up 19.28% year over year and also beating estimates by $31.06 million. Realty Income Corporation (NYSE: O) has also gained 14.38% in the past 6 months and 17.98% year to date.

By the end of the first quarter of 2021, 18 hedge funds out of the 866 tracked by Insider Monkey held stakes in Realty Income Corporation (NYSE: O) worth roughly $183 million. This is compared to 24 hedge funds in the previous quarter with a total stake value of approximately $238 million.

Like Simon Property Group, Inc. (NYSE: SPG), American Tower Corporation (REIT) (NYSE: AMT), Equinix, Inc. (REIT) (NASDAQ: EQIX), and Public Storage (NYSE: PSA), Realty Income Corporation (NYSE: O) is a good stock to invest in.

7. SL Green Realty Corp. (NYSE: SLG)

Number of Hedge Fund Holders: 21 Dividend Yield: 5.1%

SL Green Realty Corp. (NYSE: SLG) is known as Manhattan's "largest office landlord" and is an S&P 500 company. This REIT focuses on the acquisition, management, and value maximization of commercial properties in Manhattan, and ranks 7th on our list of real estate stocks that pay monthly dividends.

This June, Piper Sandler's Alexander Goldfarb raised the price target on shares of SL Green Realty Corp. (NYSE: SLG) from $75 to $88. Goldfarb also held on to his Neutral rating on the company's shares.

In the second quarter of 2021, SL Green Realty Corp. (NYSE: SLG) had an FFO of $1.60, missing estimates by $0.02. The company’s revenue was $184.61 million, beating estimates by $2.09 million. SL Green Realty Corp. (NYSE: SLG) has also gained 11.59% in the past 6 months and 22.37% year to date.

By the end of the first quarter of 2021, 21 hedge funds out of the 866 tracked by Insider Monkey held stakes in SL Green Realty Corp. (NYSE: SLG) worth roughly $162 million. This is compared to 22 hedge funds in the previous quarter with a total stake value of approximately $214 million.

Like Simon Property Group, Inc. (NYSE: SPG), American Tower Corporation (REIT) (NYSE: AMT), Equinix, Inc. (REIT) (NASDAQ: EQIX), and Public Storage (NYSE: PSA), SL Green Realty Corp. (NYSE: SLG) is a good stock to invest in.

6. EPR Properties (NYSE: EPR)

Number of Hedge Fund Holders: 15 Dividend Yield: 6%

EPR Properties (NYSE: EPR), an experiential net-lease REIT that focuses on select enduring experiential properties, and is a leader in its field. The company ranks 6th on our list of real estate stocks that pay monthly dividends.

Simon Yarmak from Stifel this July raised his price target on shares of EPR Properties (NYSE: EPR) from $49 to $55. Yarmak also has a Hold rating on the stock.

In the second quarter of 2021, EPR Properties (NYSE: EPR) had an FFO of $0.68, beating estimates by $0.07. The company’s revenue was $125.36 million, up 17.87% year over year and also beating estimates by $12.74 million. EPR Properties (NYSE: EPR) has also gained 23.34% in the past 6 months and 63.5% year to date.

By the end of the first quarter of 2021, 15 hedge funds out of the 866 tracked by Insider Monkey held stakes in EPR Properties (NYSE: EPR) worth roughly $345 million. This is compared to 15 hedge funds in the previous quarter with a total stake value of approximately $382 million.

Click to continue reading and see the 5 Real Estate Stocks that Pay Monthly Dividends.

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Disclosure: None. 10 Real Estate Stocks that Pay Monthly Dividends is originally published on Insider Monkey.