9 REITs that Pay Monthly Dividends for Passive Income

Summary

This video presents nine top real estate investment trusts (REITs) that pay monthly dividends, ideal for passive income seekers. It emphasizes the benefits of REITs, which must distribute 90% of taxable income to shareholders. Highlighted REITs include Stag Industrial, SL Green Realty, and Realty Income Corporation, each showcasing unique strengths such as resilience in fluctuating markets and consistent dividend growth. Viewers are encouraged to explore these investment opportunities and subscribe for ongoing insights into building wealth through strategic investing.

Takeaways

• 😀 REITs must distribute at least 90% of taxable income as dividends, making them attractive for income-focused investors.
• 😀 Monthly dividends provide a consistent income stream, which is preferred over quarterly payments for many investors.
• 😀 A diversified basket of REITs can enhance income potential while reducing risk.
• 😀 Chatham Lodging Trust focuses on premium hotels and employs active management to increase property value.
• 😀 Agree Realty Corporation specializes in retail properties leased to essential businesses, offering a steady dividend yield.
• 😀 Broadmark Realty Capital provides short-term loans to real estate developers, boasting high monthly dividends.
• 😀 AGNC Investment Corporation invests in government-backed mortgages, providing a high yield with relatively low risk.
• 😀 Realty Income Corporation is known for its reliability, having increased dividends for over 25 years consecutively.
• 😀 EPR Properties focuses on experiential venues and aims to diversify its holdings post-pandemic.
• 😀 Stag Industrial specializes in logistics warehouses, benefiting from the e-commerce boom and maintaining a solid dividend growth.

Q & A

What are REITs and why are they popular among investors?

REITs, or Real Estate Investment Trusts, are companies that own, operate, or finance income-producing real estate. They are popular among investors because they must pay out at least 90% of their taxable income as dividends, providing a reliable source of passive income.

What is the significance of a monthly dividend payment?

Monthly dividend payments are significant because they provide investors with a consistent and predictable income stream, which can enhance cash flow and financial planning.

How does Chatham Lodging Trust differentiate itself from other REITs?

Chatham Lodging Trust differentiates itself by actively managing its properties, which includes rebranding and redeveloping hotels to enhance value, rather than just passively owning them.

What is the dividend yield of Agree Realty Corporation?

Agree Realty Corporation has an annualized dividend yield of 3.61%, and it pays a monthly dividend of 23 cents per share.

What is Broadmark Realty Capital known for?

Broadmark Realty Capital is known for providing short-term lending to real estate investors and developers, focusing on first position deeds of trust and mortgages.

Why is AGNC Investment Corporation considered a low-risk option for investors?

AGNC Investment Corporation is considered low-risk because it primarily invests in government-backed mortgages and pays monthly dividends consistently, offering stability even in volatile markets.

What is unique about Realty Income Corporation's dividend history?

Realty Income Corporation is unique because it is one of the few REITs labeled as a Dividend Aristocrat, having increased its dividends for at least 25 consecutive years.

What challenges has EPR Properties faced, and how has it responded?

EPR Properties faced challenges during the pandemic, particularly with its movie theater tenants, leading to a dividend cut. However, it has since increased its dividend and is focusing on acquiring more experiential properties.

How does Stag Industrial benefit from e-commerce growth?

Stag Industrial benefits from e-commerce growth by operating industrial and logistics warehouses, with a significant portion of its portfolio servicing the e-commerce sector, which is experiencing increasing demand.

What factors should investors consider when building a basket of REITs?

Investors should consider sector diversity, respectable dividend yields, and the financial health of the REITs, including their Funds from Operations (FFO), to ensure they can sustain dividend payments and avoid cuts.