Which REITs pay the highest monthly dividend?

Which REITs Pay the Highest Monthly Dividend?

Real Estate Investment Trusts (REITs) are a popular investment option for individuals looking to diversify their portfolios and generate passive income. One key aspect that investors consider when selecting REITs is the dividend yield – the annual dividend payment divided by the stock price. While most REITs pay dividends on a quarterly basis, some investors prefer the regular income provided by monthly dividend payouts. If you are interested in investing in REITs that offer monthly dividends, here are a few options worth considering.

Table of Contents

1. Realty Income Corporation (O)

Realty Income Corporation, also known as “The Monthly Dividend Company,” is a well-established and reputable REIT. They have a long history of consistently paying monthly dividends and boast a track record of increasing their payouts.

2. STAG Industrial (STAG)

STAG Industrial focuses on investing in single-tenant industrial properties. With a dividend paid monthly and a strong track record of performance, STAG is a reliable option for those seeking regular income.

3. Global Net Lease (GNL)

Global Net Lease is a diversified REIT that invests in commercial properties globally. They offer a monthly dividend and have a portfolio of high-quality tenants, providing stability for investors.

4. Apple Hospitality REIT (APLE)

Apple Hospitality REIT primarily owns and operates a portfolio of upscale, select-service hotels across the United States. With a monthly dividend and a focus on quality properties, APLE can potentially deliver consistent income to investors.

5. EPR Properties (EPR)

EPR Properties specializes in entertainment, recreation, and education properties. With a diverse portfolio and a monthly dividend, EPR can be an attractive option for investors looking for reliable income.

6. Main Street Capital Corporation (MAIN)

Although not a traditional REIT, Main Street Capital Corporation is a business development company that invests in small and middle-market companies. They offer monthly dividends and can provide diversification for income-focused investors.

7. LTC Properties Inc. (LTC)

LTC Properties Inc. focuses on investing in seniors housing and healthcare properties. With a monthly dividend and a niche market, LTC provides an option for those seeking exposure to these sectors.

8. Gladstone Commercial Corporation (GOOD)

Gladstone Commercial Corporation invests in single-tenant net lease commercial properties across the United States. It pays monthly dividends and has a diversified portfolio, making it an appealing choice for income-oriented investors.

9. Pembina Pipeline Corporation (PBA)

Pembina Pipeline Corporation operates as an energy infrastructure company, owning pipelines and storage facilities. While not a traditional REIT, it pays monthly dividends and can be considered for income-seeking investors.

10. AGNC Investment Corp. (AGNC)

AGNC Investment Corp. primarily invests in residential mortgage-backed securities. It pays monthly dividends and can provide exposure to the mortgage market for investors interested in regular income.

11. NexPoint Residential Trust Inc. (NXRT)

NexPoint Residential Trust focuses on acquiring and operating value-add multifamily properties. It pays monthly dividends and offers potential for both income and capital appreciation.

12. Invesco Mortgage Capital Inc. (IVR)

Invesco Mortgage Capital Inc. primarily invests in residential and commercial mortgage-backed securities. While it has experienced volatility in the past, it offers monthly dividends and can be considered by investors willing to tolerate some risk.

While the above-mentioned REITs are known for paying monthly dividends, it is essential to conduct thorough research and consult with a financial advisor before making any investment decisions. Factors such as the current market conditions, the REIT’s performance, and individual investment goals should all be carefully considered.

Frequently Asked Questions (FAQs)

1. Are monthly dividends better than quarterly dividends?

The preference for monthly or quarterly dividends often depends on the individual investor’s financial goals and cash flow needs. Monthly dividends provide more regular income, while quarterly dividends may be more suitable for long-term investors.

2. How can I buy shares of REITs that pay monthly dividends?

Shares of REITs can be purchased through brokerage accounts, either online or with the assistance of a financial advisor. Conduct thorough research to find the REIT that suits your investment goals.

3. Can I reinvest monthly dividends from a REIT?

Many REITs offer dividend reinvestment plans (DRIPs) that allow investors to reinvest dividends automatically. This option can compound your investment over time.

4. What are the risks of investing in REITs?

Some risks of investing in REITs include fluctuations in real estate markets, interest rate changes, and potential economic downturns. Additionally, individual REITs may have unique risks specific to their property portfolios.

5. Are REIT dividends taxable?

Yes, similar to other investments, REIT dividends are generally subject to taxation. They are typically taxed as ordinary income, but consult with a tax advisor to understand the specific tax implications in your situation.

6. Can REITs provide capital appreciation in addition to dividends?

While REITs are primarily known for their dividend payouts, they can also offer the potential for capital appreciation if the value of their underlying assets increases.

7. Are monthly dividend-paying REITs less stable than those paying quarterly dividends?

The frequency of dividend payments does not necessarily indicate the stability of a REIT. Stability depends on various factors, including the REIT’s financial health, property quality, and management expertise.

8. Do monthly dividends attract higher fees compared to quarterly dividends?

The fee structure for investing in REITs is determined by the investment vehicle used, such as brokerage accounts or mutual funds. While some options may have certain administrative fees, the dividend payment frequency does not directly affect the fee structure.

9. Can I build a diversified REIT portfolio with only monthly dividend payers?

It is possible to build a diversified portfolio with only monthly dividend-paying REITs, but it may limit your investment choices. Including REITs with different dividend payment schedules can provide additional diversification.

10. Are monthly dividend REITs suitable for retirement income?

Monthly dividend-paying REITs can be a suitable option for retirement income, as they offer regular cash flow. However, investors should carefully consider their risk tolerance, financial goals, and consult with a financial advisor.

11. Are there global REITs that pay monthly dividends?

Yes, there are global REITs available that pay monthly dividends. Investors interested in international exposure can explore these options.

12. Can monthly dividend REITs be a source of passive income?

Monthly dividend REITs can generate passive income, particularly for income-focused investors. However, it is important to monitor the performance of the REITs regularly and adjust the investment strategy as needed.

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