Monthly dividend stocks are a popular choice for investors who want steady income. They’re great for retirees or anyone looking for financial stability because they offer regular and predictable payouts.
Realty Income (O), Agree Realty (ADC), and EPR Properties (EPR) and out for their strong performance, consistent monthly dividends, and sector leadership. Thanks to their solid fundamentals and reliable income potential, analysts have rated these companies as “buys.”
Let’s examine why these three monthly dividend stocks are excellent options for anyone seeking dependable monthly income.
Monthly Dividend Stock #1: Realty Income (O)
Realty Income (O), often called “The Monthly Dividend Company,” is a real estate investment trust (REIT) with over 15,450 properties across the U.S., Europe, and Puerto Rico. Under long-term net lease agreements, the company leases these properties to tenants in essential industries like grocery stores, drugstores, and home improvement retailers.
Over the past year, Realty Income’s stock has shown resilience. Its 52-week price range was $50.65 to $64.88, a 28% swing. The stock is up 7.3% in the year to date.
Realty Income’s forward dividend yield stands at an appealing 5.6%, above the real estate sector average of 4.46%. The company recently raised its monthly dividend to $0.268 per share, marking its 129th increase since going public in 1994.
In the third quarter of 2024, Realty Income reported strong results, including net income of $261.8 million ($0.30 per share) and adjusted funds from operations (AFFO) of $915.6 million ($1.05 per share). It invested $740.1 million during the quarter at an initial yield of 7.4% and raised $271 million through selling common stock.
Looking ahead, management increased its full-year AFFO guidance to $4.17–$4.21 per share, reflecting growth of about 4.8%.
Analysts are optimistic about Realty Income’s future. They have given the stock a “Moderate Buy” consensus rating and an average price target of $61.05, indicating potential 6.5% upside from current levels.
Agree Realty (ADC)
Agree Realty (ADC) is a REIT that focuses on owning and developing retail properties leased to top-tier tenants across the United States. With a portfolio of more than 2,000 properties, the company prioritizes high-quality retail assets with long-term leases, making it a reliable choice for income-focused investors.
Over the past year, ADC’s stock has charted a 52-week range between $54.28 and $78.39, reflecting a 44% swing. The stock is up 3.5% in the year to date.
ADC offers a forward dividend yield of 4.16% with an annualized payout of $3.04 per share, making it an attractive option for steady income.
In 2024, ADC reported solid financial results, with core funds from operations (Core FFO) per share growing by 3.5% to $1.02 in Q4 and Adjusted FFO (AFFO) per share rising by 4.7% to $1.04. For the full year, AFFO per share increased by 4.6% to $4.14, supported by $951 million in investments across 282 properties.
Looking ahead, ADC plans to invest between $1.1 billion and $1.3 billion in 2025, representing a 26% year-over-year increase at the midpoint.
Analysts are optimistic about ADC’s future, giving it a consensus “Moderate Buy” rating with an average price target of $79.84, implying about a 10% upside from current levels. With its consistent dividend growth and focus on high-quality retail properties, ADC remains a compelling option for investors seeking reliable monthly income and long-term stability.
Monthly Dividend Stock #3: EPR Properties (EPR)
EPR Properties (EPR) is a REIT that focuses on experiential properties like theaters, amusement parks, ski resorts, and other entertainment venues. This unique approach makes EPR stand out in the REIT sector.
Over the past year, EPR’s stock traded between $39.65 and $50.39. The stock is up 13.4% in the year to date.
With a forward dividend yield of 6.8% and an annual payout of $3.42 per share, EPR is an attractive option for income-focused investors, even with its high payout ratio of 121.86%.
In Q3 2024, EPR reported net income of $40.6 million and adjusted funds from operations per share of $1.30, down from $1.47 in the prior-year period. It narrowed its full-year FFOAA guidance to $4.80–$4.92 per share, reflecting 3.2% growth at the midpoint over 2023.
The company invested $82 million in experiential projects during the quarter, bringing its total for the year to $214.6 million while maintaining strong liquidity with $35.3 million in cash and access to a new $1 billion credit facility.
Analysts are cautiously optimistic about EPR’s outlook, giving it a “Moderate Buy” rating with an average price target of $48.91, slightly below its current trading price price. With its focus on experiential real estate and a strong dividend yield, EPR remains an appealing choice for investors seeking monthly income and portfolio diversification.
Conclusion
Realty Income, Agree Realty, and EPR Properties are exceptional picks for investors seeking reliable monthly dividends and steady growth.
With strong fundamentals, attractive yields, and promising growth prospects, these REITs are well-positioned to deliver consistent income and long-term value. For anyone aiming to enhance their portfolio with dependable cash flow, these monthly dividend stocks are worth snapping up ASAP.
