Best REITs with Monthly Dividends

Real estate investment trusts, or REITs, are a popular investment option for individuals seeking regular income through dividends. While most stocks pay dividends on a quarterly basis, there are some REITs that offer monthly dividend payments, making them an attractive choice for investors looking for steady cash flow. These monthly dividend payments can provide investors with a more consistent stream of income compared to quarterly payouts, which can help with budgeting and planning.

Investing in REITs that pay monthly dividends can be particularly beneficial for retirees or those living off their investments, as regular income can provide financial stability and peace of mind. Additionally, reinvesting monthly dividends can help compound returns over time, leading to potential growth in your investment portfolio. Some investors also appreciate the transparency and predictability of monthly dividend payments as it allows them to better plan their finances and align their cash flow needs.

Top REITs That Pay Monthly Dividends

Best REITs with Monthly Dividends

Here is a list of the best REITs with monthly dividends to find new investment strategies to diversify your portfolio and provide both short-term and long-term growth.

1. AGNC Investment Corp. (NASDAQ: AGNC)

Formerly known as American Capital Agency Corporation, AGNC offers high-quality mortgage-backed securities. These securities can be pass-through securities and a government agency sponsors and guarantees these securities, including the Federal Home Loan Mortgage Corporation, also known as Freddie Mac. As of August 2024, it paid a monthly dividend of $0.12 per share to shareholders, which comes out to a total annual yield of 14.1%.

2. Realty Income Corp. (NYSE: O)

With a commercial property focus and 5,000 big-name tenants like CVS and 7-Eleven, Realty Income has been offering stable real estate options since 1969. The trust focuses on long-term growth potential and favors debt or stock issues instead of mortgages on these commercial properties.

Investors received a dividend of $0.26 per share per month as of September 2024, with the dividend yield coming to just above 5%.

3. Apple Hospitality REIT Inc. (NYSE: APLE)

Get invested in upscale hotels with Apple Hospitality while also being a part of one of the top REITs with monthly dividends. With 220 properties in urban, suburban and developing markets, the trust offers a monthly dividend of $0.08 per share as of August 2024. That’s a total dividend yield of 6.82%.

4. Chatham Lodging Trust (NYSE: CLDT)

With 40 premium hotel brands and locations across 15 states, Chatham Lodging Trust offers access to the hospitality industry. Its strategy is to place hotels in areas of high demand but with low supply. The trust doesn’t just own hotels, it aids in the strategy involved in operating them, including revitalization, rebranding and even redevelopment. Shareholders earn $0.07 per share monthly with an annual dividend yield of 3.44%.

5. EPR Properties (NYSE: EPR)

Focusing on experiential real estate, EPR Properties is another monthly dividend REIT. This group of properties includes everything from waterparks to movie theaters. The company aims to find businesses that meet its five-star criteria and have a market-dominant position to deliver the best return on investment.

• Value
• Opportunity
• Execution
• Economics
• Position

Its monthly dividends as of August 2024 were $0.29 per share for a total annual dividend yield of 7.2%.

6. LTC Properties Inc. (NYSE: LTC)

LTC Properties oversees 212 senior housing and long-term care facilities in 29 states. Its properties include memory care, skilled nursing and assisted living facilities. To select the best places to invest its capital, LTC Properties looks for experienced operators, favorable regulations in the area, nice buildings and defendable market positions.

LTC has been in business since 1992 and makes money from leasing properties and mortgage loans. Its monthly dividend is $0.19 for an annual dividend yield of 6.23%.

7. Stag Industrial Inc. (NYSE: STAG)

Single-tenant industrial properties are Stag Industrial’s specialty. Some examples of commercial properties it invests in include warehouses, office buildings, distribution centers and manufacturing plants.

Stag invests in properties that are outdated or unfavorable in some way and then improves them to earn increased lease fees. The only catch to the business is that its properties are all within a similar industry and rely on retail and manufacturing to remain strong.

The shares pay $0.12 monthly dividend for an annual dividend yield of 3.74%.

8. ARMOUR Residential REIT Inc. (NYSE: ARR)

Invest in residential mortgage-backed securities with ARMOUR Residential REIT. You’ll get one of the highest-paying REITs at a rate of 14.06%. The REIT was incorporated in 2008, making it an older organization that has proven its strengths for many years. Its monthly dividend is $0.24 per share.

9. Choice Properties REIT (OTCMRKTS: PPRQF)

This Canadian REIT allows you to invest in 700 diverse properties in the country. Investing in other countries can provide additional benefits when diversifying your portfolio. The properties vary from offices to retail and even multi-family properties. However, more than 500 of the properties are leased to tenant Loblaw, which is a large Canadian retailer.

As of August 2024, the monthly dividend was C$0.06 per share for an annual dividend yield of 5.07%.

10. Dream Industrial Real Estate Invest Trust (OTCMRKTS: DREUF)

Dream Industrial is another Canadian REIT. But it is a bit more focused than Choice Properties and has more diversity with its tenants unlike Choice, which focuses its tenants in one grocery store chain. It focuses in multi-tenant and single-tenant properties with more than 250 light industrial properties. The trust does have some U.S. operations.

As of August 2024, the monthly dividend was C$0.06 per share for an annual dividend yield of 5.13%.

11. Ellington Residential Mortgage REIT (NYSE: EARN)

As the name suggests, you’ll be investing in residential mortgages as well as real estate assets. The U.S. government backs or sponsors the mortgages. The Old Greenwich, Connecticut, based business is a small-cap company.

Ellington Residential Mortgage offers a monthly dividend of $0.08 per share for a total annual dividend yield of 13.99%.

What are REITs With Monthly Dividends?

A real estate investment trust is a company that owns real estate investments. The real estate might vary from commercial use for shopping malls to residential in the case of new home builders or apartment managers.

REITs offer an average investor the opportunity to invest in real estate without the risks or high-ticket expenses of purchasing properties. And you’ll get payouts from the land’s proceeds in the form of dividends.

While you’ll want to buy stable, smart investments that will appreciate with time, you should also be focused on how much the investment pays in dividends. Combining the two benefits will help you decide the strongest places to put your money to help it grow.

High-yield investments often involve greater risk because these investments face greater default and economic risks. So while you’ll see stronger dividends, you should also realize that these REITs can come with some risk.

Why Do Some REITs Distribute Dividends Monthly?

Like stocks, REITs often distribute dividends quarterly, though you can find some that pay out monthly. Cashflow, financial performance and agreements with shareholders are all factors that determine how and when the REIT will pay dividends.

Offering dividends helps make the investment more attractive, ensuring others will place their trust in the REIT and help sustain it.

Where to Invest in REITs With Monthly Dividends

Start investing in high-yield monthly dividend REITs using these platforms and resources.

Receive Stable, Monthly Income from REIT Dividends

While finding REITs that offer monthly dividends instead of quarterly is somewhat challenging, it is certainly not impossible. And when you do find and invest in these trusts, you’ll receive stable, monthly dividends that can grow your portfolio or offer passive income.

Frequently Asked Questions