O, EPR, and STAG: The Top-Tier REITs Paying Hefty Monthly Dividends
There's only one thing better than receiving a quarterly dividend payment: receiving a monthly one. A growing number of companies now provide this feature, with the real estate investment trust (REIT) sector standing out as a particularly rich source.
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REITs are publicly traded real estate companies that are required to distribute a significant portion of their income to shareholders, making them ideal for income-focused portfolios. Currently, three compelling REITs—Realty Income (O), EPR Properties (EPR), and Stag Industrial (STAG) stand out as prime contenders in the monthly dividend space, with above-average yields to boot.
Realty Income (NYSE:O)
Founded in 1969, Realty Income has long been synonymous with reliable monthly dividends, earning its trademarked title, 'The Monthly Dividend Company.' Its core strategy is to generate steady monthly cash flow through a diversified portfolio of long-term net lease properties, allowing for consistent income distribution to shareholders.
Realty Income currently offers a forward dividend yield of 5.7%, significantly outperforming both the S&P 500 yield (1.3%) and the 10-year U.S. Treasury yield (4.5%). This makes it a compelling choice for income-focused investors seeking attractive, recurring returns.
What sets Realty Income apart is its exceptional track record of dividend consistency and growth. The company has paid monthly dividends for 659 consecutive months and has increased its dividend 130x since its 1994 NYSE listing—highlighting its resilience and commitment to shareholder returns.
The strength of Realty Income's dividend lies in its highly diversified real estate portfolio. The company owns approximately 15,600 commercial properties across the U.S., U.K., and Europe, all leased to tenants under long-term net lease agreements. This geographic spread reduces exposure to localized economic risks.
Further, Realty Income's tenant base is diversified across 1,598 clients operating in 91 industries. Its largest property type—convenience stores—makes up just 10.2% of its portfolio, followed closely by grocery stores at 10.1%. Other sectors include dollar stores, home improvement retailers, and quick-service restaurants. This broad diversification helps insulate the company—and its investors—from downturns in any single industry or sector.
Is it a Good Time to Buy Realty Income Stock?
Among professional analysts, Realty Income (O) holds a consensus Hold rating, based on three Buy and nine Hold recommendations over the past three months, with no Sell ratings. O's average price target of $60.91 suggests a potential upside of 6.2% from current levels.
EPR Properties (NYSE:EPR)
Like Realty Income, EPR Properties (EPR) offers a monthly dividend and currently yields an attractive 6.2% on a forward basis, outpacing both the broader market and 10-year Treasuries, as well as Realty Income's yield. While EPR doesn't match Realty Income's track record for dividend consistency, it has paid dividends for 27 consecutive years and has increased its payout each of the past three years.
EPR positions itself as 'the leading diversified experiential REIT,' focusing on real estate tied to memorable experiences. Its portfolio spans 331 properties across the U.S. and Canada, leased to over 200 tenants in various sectors, including golf entertainment complexes, movie theaters, gyms, casinos, ski resorts, water parks, and amusement parks.
This strategy leverages a compelling consumer trend: nearly 75% of Americans now value experiences over material goods, with millennials and younger generations driving this shift, indicating long-term tailwinds for EPR's business model.
However, the portfolio is more concentrated than Realty Income's and leans heavily on consumer discretionary sectors. This makes EPR more vulnerable during economic downturns, as it lacks exposure to essential businesses like grocery and convenience stores. Its smaller size also means financial stress for a few tenants could have a greater impact. Notably, EPR suspended its dividend during the COVID-19 lockdowns (May 2020–August 2021), highlighting the potential volatility of its niche.
That said, EPR remains a compelling income opportunity with a differentiated approach to real estate, and its high yield and focus on the experience economy make it a unique addition to an income-focused portfolio.
What is the Prediction for EPR Properties?
EPR Properties currently holds a Hold consensus rating from analysts, based on three Buy, five Hold, and two Sell ratings issued over the past three months. EPR's average price target of $54.75 suggests a potential downside of 4% from current levels.
Stag Industrial (NYSE:STAG)
Like Realty Income and EPR Properties, Stag Industrial (STAG) is a REIT that pays a monthly dividend. As its name suggests, Stag specializes in single-tenant industrial properties across the United States, including warehouses and light manufacturing facilities.
While its 4% forward yield is lower than those of Realty Income and EPR, it remains attractive relative to the broader market. Stag also has a solid track record of dividend growth, having increased its dividend payout annually since its initial public offering (IPO) in 2011.
One potential drawback is its narrower sector focus. Unlike Realty Income's highly diversified tenant base across multiple industries, Stag is concentrated in the industrial sector. While this focus aligns well with long-term e-commerce and logistics trends, it could pose risks if industrial demand weakens.
Is Stag Industrial a Good Stock to Buy?
Stag Industrial currently holds a Hold consensus rating, based on three Buy and six Hold recommendations over the past three months, with no Sell ratings. STAG's average price target of $37 suggests a modest downside potential of less than 1% from current levels.
Why Realty Income Leads Among Monthly Dividend REITs
In summary, I'm bullish on all three of these REITs—Realty Income, EPR Properties, and Stag Industrial—thanks to their monthly dividend payouts, attractive yields of 4.1% or higher, and long-standing histories of dividend consistency and growth. Each offers unique strengths and would make a solid addition to a dividend-focused portfolio.
That said, if I had to choose just one, Realty Income stands out as the top pick. Its 5.8% yield is higher than Stag Industrial's and only slightly below EPR's, but what truly sets it apart is its unmatched track record: 659 consecutive monthly dividend payments and 130 increases since 1994. Additionally, Realty Income's broad and geographically diverse property portfolio provides greater stability and defensiveness, particularly valuable during periods of economic uncertainty.
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