Which Of These Three Monthly Dividend REITs Will Make You The Most Money In A Year With A $10,000 Investment?

The entire point of investing is to grow your money as much as possible in the shortest time. That explains why real estate investment trusts (REITs) that pay monthly dividends have traditionally been a favorite for alternative investors. With that in mind, Benzinga compares three REITs that pay monthly dividends to see which one of them would pay the largest yield in one year after a $10,000 investment.

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Realty Income Corp: Paid Monthly Dividends For Five Years Running

Realty Income Corp. (NYSE: O) has long been a favorite of investors due to its reliability in making monthly distributions. July 2024 marks the 649th consecutive month that Realty Income has made distributions. This massive REIT makes money for investors by owning and operating storage facilities worldwide, mostly in the Continental U.S. and Puerto Rico.

Their portfolio includes 15,400 properties on triple-net leases rented to hundreds of tenants in dozens of industries. In recent years, Realty Income has diversified its holdings by adding gaming, distribution, office, and industrial properties, which now comprise 20% of its portfolio. Their market cap is estimated at just over $48 billion, and they pay out a solid 5.74% dividend yield.

STAG Industrial — Industrial Powerhouse

Stag Industrial Inc. (NYSE: STAG) is a well-respected industrial REIT. They own and operate single and multi-tenant industrial properties, most of which are warehouse and distribution centers, many of which are concentrated in the Midwest and Eastern United States. This REIT delivers returns to tenants via rental income from their warehouses. Its clients include industry leaders in diverse sectors, including logistics, airfreight, and automotive.

Benzinga estimates Stag's current market cap at $6.85 billion. They recently announced they will pay a monthly dividend of $0.1233 per share. Stag's current share price of $37.60, with an estimated dividend yield of 3.96%, translates to an annual dividend of roughly $1.48 per share.

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EPR Properties — Investing in Customer Experiences and Education

EPR Properties (NYSE: EPR) is a REIT that invests in "experiential properties" in North America. Its portfolio is divided into two sections. The first section focuses on entertainment options like movie theaters, gaming, and ski resorts, while the second focuses on education-oriented properties like private schools and early childhood education facilities. However, the lion's share of this REIT's profits is generated by entertainment.

EPR's shares are trading at $43.12, and Benzinga estimates its market cap at $3.26 billion. Benzinga also estimates that EPR is paying out a very impressive 8.05% dividend yield to its shareholders and EPR's heavily diversified portfolio has every opportunity to deliver consistent returns well into the future.

Which REIT Pays the Biggest Dividend Based on a $10,000 Investment

Any of these three REITs would be welcome additions to an investor portfolio. However, only one can win in a head-to-head competition to see who pays the biggest dividend in one year after a $10,000 investment. Based on that criteria, EPR Properties would be the winner, with a $10,000 investment paying $805 annually, reflecting a $61.92/month distribution.

Next up is Realty Income, which would generate a yearly dividend of $574 with a $10,000 investment thanks to its 5.74% dividend yield. That translates to a monthly distribution of $47.83. Last is Stag Industrial, which would deliver an annual dividend of $396 (or $33/month) on a $10,000 investment. So, EPR wins if your focus is the largest monthly dividend, but every investor has different goals.

If you're looking for the most reliable return, you may prefer the slightly lower dividend yield offered by Realty Income. On the other hand, you may opt to invest in Stag Industrial's portfolio if you want to buy as many shares as possible or if you have already invested heavily in storage and gaming. Therein lies the beauty of REIT investing; the permutations for how to build wealth are almost endless.   

 Disclosure: Estimated dividends and share prices fluctuate daily. There may be some variance between the current and estimates when this article was written. 

Looking For Higher-Yield Opportunities?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000.

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings. 

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