Investing in dividend stocks can be a great way to generate passive income. However, most dividend stocks make quarterly payments, which can make it challenging for investors to align their income with their monthly expenses. Building a portfolio of companies with staggered dividend payment schedules can help address this issue, but it requires more effort and research.
Fortunately, there are companies that make it easy for investors to align their income with their expenses by paying monthly dividends. Two standout examples of monthly dividend stocks are Realty Income (NYSE: O) and Agree Realty (NYSE: ADC). Not only do these companies pay monthly dividends, but they also offer high-yielding dividends, allowing investors to generate more income each month.
Realty Income, also known as The Monthly Dividend Company, has a remarkable track record of consistently paying monthly dividends. With 655 consecutive monthly dividends and 128 dividend increases since its listing in 1994, Realty Income has demonstrated its commitment to providing reliable income to investors. The REIT has grown its dividend at a compound annual rate of 4.2% over the past 30 years, currently yielding 5.8%, significantly higher than the S&P 500’s yield of 1.2%.
The key to Realty Income’s success lies in its diversified portfolio of net lease properties. These properties provide stable rental income as tenants cover operating expenses, making it a reliable source of cash flow for the company. With over 15,450 properties leased to more than 1,550 clients in various industries, Realty Income has built a strong foundation for continued growth.
In addition to its existing portfolio, Realty Income has been actively expanding through strategic acquisitions and investments. Last year, the company completed a $9.3 billion merger with Spirit Realty and invested over $3.5 billion in other property acquisitions. With a strong financial profile and a focus on growth, Realty Income is well-positioned to continue increasing its high-yielding monthly dividend.
Agree Realty is another monthly dividend stock that has been gaining attention from investors. The company switched to a monthly dividend schedule a few years ago and has been steadily increasing its dividend at a compound annual rate of 5.6% over the past decade. With a current yield of 4.3%, Agree Realty offers investors a solid income stream.
Unlike Realty Income, Agree Realty focuses exclusively on retail properties secured by net leases or ground leases. This focused strategy has allowed the company to build a portfolio of stable income-generating properties leased to financially strong retailers. With a strong emphasis on investment-grade tenants and strategic acquisitions, Agree Realty has positioned itself for continued growth and dividend increases.
Both Realty Income and Agree Realty are high-quality, high-yielding monthly dividend stocks that offer investors a reliable source of income. With their strong real estate portfolios, financial stability, and growth potential, these companies are well-suited for investors looking to align their income with their monthly expenses. By investing in these monthly dividend stocks, investors can benefit from consistent cash flow and the potential for long-term growth.
