The post Best 11 REITs with Monthly Dividends in 2023 by Rebekah Brately appeared first on Benzinga. Visit Benzinga to get more great content like this.
Dividend income offers a stable way to make passive money with your savings. REITs with monthly dividends can help you grow your money with sound investments, though with any investment, there is always some risk involved. And the great part is, the dividends are often provided at a higher rate than most standard stocks because of the level or risk. Learn more about how dividends with REITs work and what to expect from your investment.
Table of contents
[Show]
REITs With Monthly Dividends Explained
A real estate investment trust is a company that owns real estate investments. The real estate might vary from commercial use for shopping malls to residential in the case of new home builders or apartment managers.
REITs offer the average investor the opportunity to invest in real estate without the risks or high-ticket expense of purchasing properties. And you’ll get payouts from the land’s proceeds in the form of dividends.
While you’ll want to buy stable, smart investments that will appreciate with time, you should also be focused on how much the investment pays in dividends. Combining the two benefits will help you decide the strongest places to put your money to help it grow.
High-yield investments often involve greater risk because these investments face greater default and economic risks. So while you’ll see stronger dividends, you should also realize that these REITs can come with some risk.
Why Do Some REITs Distribute Dividends Monthly?
Like stocks, REITs often distribute dividends quarterly, though you can find some that pay out monthly. Cashflow, financial performance and agreements with shareholders are all factors that determine how and when the REIT will pay dividends.
Offering dividends helps make the investment more attractive, ensuring others will place their trust in the REIT and help sustain it.
11 Best REITs with Monthly Dividends
Review a list of the best REITs with monthly dividends to find new investment strategies to diversify your portfolio and provide both short-term and long-term growth.
1. AGNC Investment Corp. (NASDAQ: AGNC)
Formerly known as American Capital Agency Corporation, AGNC offers high-quality mortgage-backed securities. These securities can be pass-through securities and a government agency sponsors and guarantees these securities, including the Federal Home Loan Mortgage Corporation, also known as Freddie Mac. As of August 2023, it paid a monthly dividend of $.12 per share to shareholders, which comes out to a total annual yield of 13.97%.
2. Realty Income Corp. (NYSE: O)
With a commercial property focus and 5,000 big-name tenants like CVS and 7-Eleven, the trust has been offering stable real estate options since 1969. The trust focuses on long-term growth potential and favors debt or stock issues instead of mortgages on these commercial properties.
Investors received a dividend of $.26 per share per month as of August 2023.
3. Apple Hospitality REIT Inc. (NYSE: APLE)
Get invested in upscale hotels with Apple Hospitality while also being a part of one of the top REITs with monthly dividends. With 220 properties in urban, suburban and developing markets, the trust offers a monthly dividend of $.08 per share as of July 2023. That’s a total dividend yield of 6.32%.
4. Chatham Lodging Trust (NYSE: CLDT)
With 40 premium hotel brands and locations across 15 states, Chatham Lodging Trust offers access to the hospitality industry. Its strategy is to place hotels in areas of high demand but with low supply. The trust doesn’t just own hotels, it aids in the strategy involved in operating them, including revitalization, rebranding and even redevelopment. Shareholders earn $.07 per share monthly with an annual dividend yield of 2.18%.
5. EPR Properties (NYSE: EPR)
Focusing on experiential real estate, EPR Properties is another monthly dividend REIT. This group of properties includes everything from waterparks to movie theaters. The company aims to find businesses that meet its five-star criteria that have a market-dominant position to deliver the best return on investment.
- Value
- Opportunity
- Execution
- Economics
- Position
Its monthly dividends as of July 2023 were $.27 per share for a total annual dividend yield of 7.2%.
6. LTC Properties Inc. (NYSE: LTC)
LTC Properties oversees 212 senior housing and long-term care facilities in 29 states. Its properties include memory care, skilled nursing and assisted living facilities. To select the best places to invest its capital, LTC Properties looks for experienced operators, favorable regulations in the area, nice buildings and defendable market positions.
LTC has been in business since 1992 and makes money from leasing the properties and mortgage loans. Its monthly dividend is $.19 for an annual dividend yield of 6.68%.
7. Stag Industrial Inc. (NYSE: STAG)
Single-tenant industrial properties are Stag Industrial’s specialty. Some examples of commercial properties it invests in include warehouses, office buildings, distribution centers and manufacturing plants.
Stag invests in properties that are outdated or unfavorable in some way and then improves them to earn increased lease fees. The only catch to the business is that its properties are all within a similar industry and relies on retail and manufacturing to remain strong.
The shares pay $.12 monthly for an annual dividend yield of 3.93%.
8. ARMOUR Residential REIT Inc. (NYSE: ARR)
Invest in residential mortgage-backed securities with ARMOUR Residential REIT. You’ll get one of the highest-paying REITs at a rate of 19.83%. The REIT was incorporated in 2008, making it an older organization that has proven its strengths for many years. Its monthly dividend is $.08 per share.
9. Choice Properties REIT (OTCMRKTS: PPRQF)
This Canadian REIT allows you to invest in 700 diverse properties in the country. Investing in other countries can provide additional benefits when diversifying your portfolio. The properties vary from offices to retail and even multi-family properties. However, more than 500 of the properties are leased to tenant Loblaw, which is a large Canadian retailer.
As of July 2023, the monthly dividend was $.06 per share for an annual dividend yield of 5.6%.
10. Dream Industrial Real Estate Invest Trust (OTCMRKTS: DREUF)
Dream Industrial is another Canadian REIT. But it is a bit more focused than Choice Properties and has more diversity with its tenants unlike Choice, which focuses its tenants in one grocery store chain. It focuses in multi-tenant and single-tenant properties with more than 250 light industrial properties. The trust does have some U.S. operations.
As of July 2023, the monthly dividend was $.06 per share for an annual dividend yield of 5.23%.
11. Ellington Residential Mortgage REIT (NYSE: EARN)
As the name suggests, you’ll be investing in residential mortgages as well as real estate assets. The U.S. government backs or sponsors the mortgages. The Old Greenwich, Connecticut, based business is a small-cap company.
Ellington Residential Mortgage offers a monthly dividend of $.08 per share for a total annual dividend yield of 13.35%.
Where to Invest in REITs With Monthly Dividends
Start investing in high-yield monthly dividend REITs using these platforms and resources.
Arrived Homes is a real estate investment platform that focuses on building wealth through investing in rental properties. While most real estate platforms and REITs focus on commercial properties, Arrived Homes focuses on single-family homes as its source of rental income.
This focus on smaller properties allows Arrived Homes to sell ownership shares on individual real estate properties to non-accredited investors with buy-ins as low as $100. Learn more about Arrived Homes with Benzinga’s review.
Best For
- Small- to medium-sized investors
- Investors interested in rental income
- Investors looking to diversify
- Buy-ins as low as $100
- Open to non-accredited investors
- Offers ownership shares in real property (and all the tax benefits)
- Multiple ways to earn dividends (rental income and property appreciation)
- Great way to diversify portfolio
- Open to self-directed individual retirement accounts (IRAs)
- Long hold periods
- No secondary market to liquidate shares
CityVest is a web-based real estate investment platform that was established to give small-to-medium-sized investors access to real estate investment opportunities that typically require 6-figure minimum investments. CityVest does this by pooling multiple investor contributions into 1 bundle large enough to satisfy the minimum investment requirements of the best institutional private equity real estate investment funds.
Best For
- Individual investors seeking access to institutional investments
- Experienced investors looking to diversify their portfolio
- Investors seeking investments with strong due diligence and screening
- Access to high-performance institutional funds
- High returns
- Intense vetting of investment opportunities
- Third-party due diligence on all funds
- No registration needed to review investment opportunities
- Quarterly distributions
- Only available to accredited investors
- Not a lot of investor control of fund options
Crowdstreet is an online real estate investment platform that lets investors choose from a wide range of real estate investment offerings to crowdfund. Crowdstreet investors are free to buy into managed funds, individual buildings or even build a bespoke investment portfolio that includes both kinds of deals.
CrowdStreet’s platform has a diverse range of property types, ranging from multifamily to office, industrial, self-storage and others.
Best For
- Accredited investors
- Long-term investors
- Investors looking to diversify from stocks
- User-friendly interface
- Diverse investment offerings
- Great investor resources
- Proven performance history
- Many offerings eligible for inclusion in self-directed IRA
- Accredited investors only
- Most offerings require a $25,000 minimum investment
This unique online platform enables investors to handle the entire commercial real estate investing process right from their RealtyMogul dashboard. With rigorously vetted property listings, expertly managed REITs, and a commitment to providing top-notch service and support to its members, RealtyMogul makes commercial real estate accessible to everyday investors.
Best For
- Newer accredited investors who want access to pre-vetted properties
- Non-accredited investors seeking consistent cash flow from well-managed REITs
- Experienced real estate investors who want access to deal-specific information that allows them to perform their own due diligence more easily.
- Do everything from finding the investment property through to signing the legal documents and monitoring your portfolio, all in one platform.
- All properties are pre-vetted through RealtyMogul’s transparent and rigorous due diligence process.
- Investment minimums as low as $5,000
- Keep track of investments with regular updates posted directly to your dashboard
- Automated investing
- Individual property marketplace is only open to accredited investors
- Does not offer portfolio management
First National Realty Partners (FNRP) is a private equity firm that focuses on investing in high-traffic, grocery-anchored commercial real estate. FNRP employs a strict set of qualification criteria that investments must meet before they can be considered for inclusion in FNRP’s portfolio. The only deals you’ll see on the company’s platform have been well-vetted by professionals who have determined that the investment has potential. Though you’ll need to make a $50,000 initial investment to get started with FNRP, this amount is significantly lower than the amount you’d typically need investing in commercial real estate as a solo investor.
Best For
- Investors seeking a stable asset class to hedge portfolio against volatility
- Investors with long-term appreciation goals
- Investors seeking a fully passive investment opportunity
- Accredited investors looking for alternative investments
- Strong due diligence process
- Partners receive quarterly cash distributions
- 100% in-house investment process helps deals close quickly and secures more value and control for investments
- $50,000 minimum investment
- Accredited investors only
Fundrise is an online real estate investing platform with two clear aims: to simplify and democratize real estate investing. While there is no shortage of real estate investing platforms, Fundrise is one of the few that is open to non-accredited investors. Traditional real estate investing, and by extension most real estate crowdfunding platforms, require investors to pledge large amounts of capital. As opposed to the $25,000 to $50,000 investment minimums on many competing platforms, Fundrise distinguishes itself from the crowd by accepting investor contributions as low as $10.
The platform also has some of the highest quality real estate deals available. With a massive portfolio of institutional-quality properties, Fundrise investors can generate cash flow and long-term growth through a diverse portfolio of commercial real estate, multifamily properties, single-family rentals and ground-up developments.
Best For
- New real estate investors looking to get their feet wet
- Non-accredited investors
- Real estate investors who want a “set-it and forget it”-oriented option
- Investors looking for low-to-moderate cost buy-ins
- Multiple offerings available to non-accredited investors
- Simple menu of investment options
- Can use for IRA contributions
- Incredibly affordable buy-ins
- Low, easy-to-understand investor fee schedule
- Extended hold periods
- Limited secondary market
Receive Stable, Monthly Income from REIT Dividends
While finding REITs that offer monthly dividends instead of quarterly is somewhat challenging, it is certainly not impossible. And when you do find and invest in these trusts, you’ll receive stable, monthly dividends that can grow your portfolio or offer passive income. Start investing now.
Frequently Asked Questions
What is the best monthly dividend REIT?
One of the best monthly dividend REITs is AGNC Investment Corp., which pays annual dividends of 14.22%.
Are REITs with monthly dividends high-yield?
Some REITs with monthly dividends are high-yield while others are pretty average. You should review total annual yields to determine whether a monthly or quarterly dividend ends up paying out more.
How do I find out a REIT’s payment schedule?
Review the trust’s documentation to see its payment schedule and whether it is monthly or quarterly.
The post Best 11 REITs with Monthly Dividends in 2023 by Rebekah Brately appeared first on Benzinga. Visit Benzinga to get more great content like this.
