Generate Passive Income with These 7 Monthly Dividend REITs
One of the best ways to protect your portfolio, and generate consistent income is buying REITs with monthly dividends. Even better, with interest rates likely to come down in the new year, REITs may become even more attractive.
Plus, at the moment, most REITs are cheap, just starting to recover, and paying higher yields than your average stock. That being said, here are seven red-hot REITs with monthly dividends.
Realty Income (O)
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The last time I mentioned Realty Income (NYSE:O) it traded around $54 on Nov. 27.
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Today it’s up to $56.62 and could push even higher. Now, if it can break above resistance dating back to early August, it could potentially retest $62.
Inflation is cooling off and its retail tenants could see higher consumer spending, resulting in high occupancy rate for the REIT.
Realty Income also yields 5.43%, and just declared its 123rd dividend increase to $0.2565 per share from $0.2560 per share. The dividend is payable on Jan. 12, 2024, to stockholders of record as of Jan. 2, 2024. It’s one of the top REITs with monthly dividends to buy and hold.
AGNC Investment (AGNC)
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I also mentioned AGNC Investment (NASDAQ:AGNC) on Nov. 27, as it traded around $8.50. It’s now up to $9.37, and could soon retest $10 a share.
As I noted at the time, its yield of 15.37% is attractive. Analysts were getting bullish, with Bank of America, for example, raising its price target to $8.75 from $7.50.
Billionaires were jumping on board, too. In fact, according to Motley Fool contributor Sean Williams, Steven Cohen of Point72 Asset Management picked up 991,743 shares.
Plus, the REIT just declared a monthly dividend payout of 12 cents a share, which is payable Jan. 10 to shareholders of record as of Dec. 29. In short, there’s a lot to like about AGNC, another one of the top REITs with monthly dividends. Plus, you can get paid to wait for it to recover.
Agree Realty (ADC)
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There was also Agree Realty (NYSE:ADC). On Nov. 27, it traded around $57, and is now up to $61.90. From here, I’d initially like to see it retest $68, with a few solid catalysts.
For one, it carries a yield of about 4.8%. Two, its CEO recently bought 4,000 shares in early October. And three, its client base should benefit well from lower inflation and lower interest rates in 2024.
ADC also just declared a monthly dividend of $0.247 per share, which is payable Jan. 16 to shareholders of record as of Dec. 29. Earnings haven’t been too shabby either. Core funds from operations in Q3 surpassed expectations by one cent, totaling $1. Revenue exceeded expectations by $1.84 million, reaching $136.81 million, a 24.3% increase compared to last year.
SL Green Realty Corp. (SLG)
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We can also look at SL Green Realty Corp. (NYSE:SLG), which just ran from about $29.86 to a high of $45.46. From here, if it can break through overhead resistance dating back to August 2022, it could potentially retest $55 a share.
Even better, with a yield of 6.6%, the REIT, which focuses on office buildings and shopping centers in New York City, declared a monthly dividend of 25 cents a share.
It’s payable Jan. 16 to shareholders of record as of Dec. 29. This is another one of the top REITs with monthly dividends that will benefit from a lower interest rate environment in the new year.
EPR Properties (EPR)
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Or, we can look at EPR Properties (NYSE:EPR), which yields 6.9%. Since the end of October, the REIT ran from about $40 to nearly $48, and could see higher highs. It also just declared a monthly dividend of $0.275, which is payable Dec. 15 to shareholders of record as of Nov. 30.
EPR just raised guidance for funds from operations as adjusted thanks to deferral collections.
“We are pleased to see the ongoing stabilization of our portfolio as the restructured master lease agreement with Regal became effective in the quarter, and we continue to see a strong recovery at the box office,” said President and CEO Greg Silvers, as quoted by Seeking Alpha.
LTC Properties (LTC)
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There’s also LTC Properties (NYSE:LTC), which manages senior housing and long-term care facilities.
The REIT announced a $0.19 per share monthly cash dividend for October, November, and December 2023, payable on October 31, November 30, and December 29, 2023, respectively.
Plus, with an investment portfolio of 213 properties in 29 states with 29 operating partners, the REIT has also been explosive. Since bottoming out around $30.25 in October, it’s now up to $33.71. From here, I’d like to see it retest $34.75 initially.
Earnings haven’t been too shabby here either. Its FFO of 65 cents in the third quarter exceeded expectations by a penny. Revenue of $49.3 million surpassed expectations by $1.32 million, with a YoY increase of 13.3%.
Apple Hospitality (APLE)
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On Nov. 27, I also highlighted an opportunity in Apple Hospitality (NYSE:APLE), as it traded at around $16.20.
Today, it’s up to $17.15 and could see higher highs, too. With a yield of about 5.6%, the REIT just declared an eight-cent monthly dividend, payable Dec. 15 to shareholders of record as of Nov. 30.
Earnings have also been solid, with Q3 FFO of 45 cents in line with estimates. Revenue of $385.26 million, up approximately 13% YoY, exceeded expectations by $32.44 million.
Plus, with millions of Americans taking longer vacations all over the world, some of its biggest clients will benefit.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
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