Best 11 REITs with Monthly Dividends in 2023

The company is guiding for 18.5%-21.5% same-store net operating income growth this year and core FFO per share of $8.30-$8.50, up 21.5% at the midpoint of guidance. Annual dividend growth over five years has ranged around 11%, while https://1investing.in/ payout from adjusted FFO is relatively modest at 68%. Strong demand for manufactured housing sites, fueled by retiring baby boomers, has enabled ELS to maintain 98%+ occupancy rates and 4.2% annual core rent growth over five years.

They are willing to purchase units of those businesses in exchange for income and a peace of mind. See all 68 dividend aristocrats, including their dividend yields, Dividend Safety Scores, and analysis of the best aristocrats for long-term investors. See all 50 dividend kings, including their dividend yields, Dividend Safety Scores, and analysis of the best kings for long-term investors.

Monthly Dividend Stock #21: Ellington Financial

Thus, adding REITs to a portfolio should enable it to produce better risk-adjusted returns as they should help smooth out volatility. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. On top of providing sector lists, we also provide stock cards for each company we follow. It is important to not only follow the (A)FFO in general but also to follow the (A)FFO per unit of ownership. One of the REITs’ favorite way to finance their new projects is to issue more units.

According to NAREIT data, REIT dividends averaged approximately 3.4% in August, or more than twice the yield of the S&P 500. The best REITs have a solid history of dividend payments and dividend increases. Dividend increases benefit your net worth and improve the efficiency of your portfolio. Long term, sustainable dividend growth requires business growth to support it.

REITs That Pay Dividends Regularly

Research has proved that REITs are not directly correlated to stock market movements over the longer term. Since these businesses must distribute 90% of their profit to shareholders, you can imagine how most of them offer a relatively high dividend income. This is one of the rare sectors where you can find “relatively safe” stocks paying 5%, 6% even 7%+.

For investors looking to generate monthly income, things get a little trickier. There are a few that pay monthly dividends, and even fewer still that are worth owning. Monthly payers provide a greater deal of flexibility, especially those that use portfolio income to pay their bills, so these deserve special consideration when crafting a larger portfolio. LTC has been in business since 1992 and makes money from leasing the properties and mortgage loans.

The Dividend Stock Screener on Dividend.com is a great way to identify stocks and REITs that meet your criteria for income-producing securities. You can screen stocks based on industry, size, yield, payout ratio and dividend history. In fact, this screen was used to identify the list of REITs that pay monthly dividends, some of the top ones of which you’ll find highlighted below. REITs (real estate investment trusts) are stocks that dish 90% of their profits as payouts. Rather than buying shares and “hoping” they’ll go up, we can lock in quarterly (or even monthly!) dividends—real cold cash!

Get comfortable with the business model

The REIT collected 94% of contracted rents during the June quarter and experienced rising occupancy rates in both its skilled nursing and senior housing segments. FFO per share (funds from operations, a key REIT metric) was flat year-over-year at 36 cents during the June quarter, but amply covered CTRE’s 27.5 cents per-share quarterly dividend. CareTrust REIT (CTRE, $21.27) acquires and leases senior housing and healthcare properties to many of the country’s leading regional and national healthcare chain operators.

In July 2023, AGNC Investment Corp. paid a monthly dividend of $0.12 per share (for an annual dividend per share of $1.44). Realty Income stock closed at $71.77 on Friday, just 3% below the all-time high it set Oct. 26. That’s good for a market cap of $41.2 billion and a yield just under 4%, based on an annual dividend of $2.83.

On May 11th, 2023, Ellington Residential reported its first quarter results for the period ending March 31st, 2023. The company generated net income of $2.3 million, or $0.17 per share. Ellington achieved adjusted distributable earnings of $2.8 million in the quarter, leading to adjusted earnings of $0.21 per share, which does not cover the dividend paid in the period. Ellington Residential Mortgage REIT acquires, invests in, and manages residential mortgage and real estate related assets. Ellington focuses primarily on residential mortgage-backed securities, specifically those backed by a U.S. The company’s leverage, based on tangible net book value “at risk,” was 7.2x as of June 30, 2023, and the average leverage for the quarter was also 7.2x.

• This REIT’s dividends isn’t the only thing seeing impressive growth.
• To compare a REIT’s leverage to its peers, focus on the debt-to-equity ratio and the debt ratio.
• REITs also offer the possibility for long-term capital appreciation, which adds to investors’ return.
• Dividend yields are calculated by annualizing the most recent payout and dividing by the share price.
• Dividend.com routinely develops new and innovative tools to help investors execute on top dividend-paying stocks.

Because each share represents a larger slice of the company after the split, the stock price rises. REITs have a special tax status that requires them to pay out at least 90% of their taxable income to shareholders. For the REITs that are profitable, that requirement can lead to a higher-yielding investment than, say, blue-chip stocks or investment-grade debt. REITs return value to shareholders in two ways—share price appreciation and dividend yield. With inflation at a 40-year high running at more than 6.4%, dividend stocks offer one of the best ways to beat inflation and generate a dependable income stream.

Monthly Dividend Stock #10: EPR Properties

The stock boasts Buy or Strong Buy ratings by seven of the 12 Wall Street analysts following it. Equinix’s growth initiatives are supported by a BBB+ rated balance sheet showing $5.8 billion of available liquidity. The REIT has recorded 78 consecutive quarters of revenue growth, which is the longest track record of any S&P 500 company.

• A real estate investment trust is a company that owns real estate investments.
• Annual dividend growth over five years has ranged around 11%, while payout from adjusted FFO is relatively modest at 68%.
• This real estate company also finances commercial leasing and brand investment to generate investor dividends through in-person and digital sales.
• In the second quarter, total revenues grew 44% over last year’s quarter thanks to the trust’s acquisition spree since its inception.

Its portfolio includes 213 properties in 29 states with 29 operating partners. Based on gross real estate investments, the portfolio is composed of approximately 50% senior housing and 50% skilled nursing facilities. Based on each tenant’s share of 2022 revenue of $128.2 million, LTC’s largest tenants were Prestige Healthcare (14%), ALG Senior (10.4%), Brookdale Senior Living (8.9%), and Anthem Memory Care (6.2%).

Best REIT Investments

Despite the pandemic, Alpine has raised its dividend 22% this year and thus it is offering a 5.3% dividend yield. However, given the healthy payout ratio of 68%, the reliable cash flows backed by multi-year leases and growth potential, the dividend should be considered safe in the absence of a prolonged crisis. Based on estimated fiscal 2021 FFO of top 100 software companies in india 2017 $1.49, CareTrust trades for a price-to-FFO ratio (P/FFO) of ~14.6. A higher P/E multiple could increase shareholder returns by approximately 0.2% per year over the next five years. In addition, when combined with the 5.5% expected growth rate and 4.9% starting dividend yield, we expect average total annual returns of 9.9% over the next five years.

CubeSmart (CUBE, $47.35) is among the top three self- storage REITs in the U.S., owning and/or managing nearly 1,300 properties. This REIT expanded its portfolio in high-growth Western markets (Southern California, Phoenix, Houston and Las Vegas) last December via the $1.7-billion acquisition of Storage West, which owned 59 facilities. CTRE also has an active acquisition pipeline, and so far this year has acquired skilled nursing facilities in Texas and Illinois, as well as an 18-property portfolio in the Mid-Atlantic. In each case, the new facilities have already been added to existing master leases with current CareTrust tenants. CareTrust has 32 facilities representing roughly 10% of contracted rents that it plans to reposition or sell as part of a 2022 plan to optimize its portfolio. Three underperforming senior housing facilities are being converted into residential addiction recovery centers, marking the company’s initial foray into the lucrative behavioral health facility market.

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REIT values fell through the floor during the financial crisis as defaults skyrocketed, income dried up and facilities went vacant. REIT prices and interest rates generally move in opposite directions, but each sector responds uniquely. This will be especially important to keep an eye on given that interest rates are currently very low. EPR Properties specializes in education and entertainment-related venues, such as charter schools, movie theaters, water parks, ski resorts and golf courses. EPR focuses on what it calls its Five-Star Investment Criteria, which looks at value, opportunity, execution, economics and position.

Additionally, the quarterly adjusted funds from operations (“AFFO”) amounted to $5.5 million. On August 3rd, Clipper Properties released its second-quarter results. The company achieved record quarterly revenues of $34.5 million and income from operations of $8.0 million during the second quarter of 2023. Notably, there was also a record net operating income (“NOI”) of $19.2 million for the same period. Clipper Properties owns commercial (primarily multifamily and office with a small sliver of retail) real estate across New York City. The currently high dividend yields of REITs is not an isolated occurrence.