One of the big advantages of owning certain real estate investment trusts (REITs) over common stock is this: Some pay dividends monthly. Stocks pay dividends quarterly, which is nice, but monthly sounds better to more than a few investors. With that in mind, here are five REITs paying the monthly dividends.
1. Agree Realty Corp. (NYSE: ADC) pays a 3.61% annualized dividend and trades on the New York Stock Exchange with an average daily volume of 815,000 shares. The monthly dividend payment is $0.23 per share.
The company develops community shopping centers, mostly in the Midwest and in the Southeastern United States. Agree has been in business since 1971 and has been publicly traded since its 1994 initial public offering.
Credit Suisse Group AG analysts initiated coverage of the REIT in June with an outperform rating. Bank of America Corp. (NYSE: BAC) in June upgraded Agree from neutral to buy.
The short float sits at a relatively high 12% — something to keep in mind if those who are short are ever forced to cover, that could provide fuel for a rally.
2. EPR Properties (NYSE: EPR) is traded on the New York Stock Exchange and pays an annual dividend yield of 6.19%. The monthly dividend payment comes to $0.28 per share. This real estate investment trust is relatively lightly traded with an average daily volume of just 469,000 shares.
EPR is focused on properties offering entertainment, recreation and leisure activities. The company owns total investments worth $6.6 billion with 358 locations and 200 tenants in 44 states and Canada. Janney Montgomery Scott in upgraded EPR in July from neutral to buy, and Raymond James Financial Inc. (NYSE: RJF) upgraded the REIT in June from market perform to strong buy with a price target of $62 per share.
3. Realty Income Corp. (NYSE: O) pays a monthly dividend of $0.29 per share for an annualized yield of 4.04%. The company owns 11,400 real estate properties under long-term net lease agreements with commercial clients, according to its website.
Analysts at one of the big investment firms like the REIT. Credit Suisse initiated coverage in June with an outperform rating. Realty Income is heavily traded with an average daily volume of 3.89 million shares, an amount indicating the presence of large institutional investors and traders.
4. SL Green Realty Corp (NYSE: SLG) bills itself as “New York City’s largest owner of office real estate.” The New York Stock Exchange-traded REIT pays a monthly dividend of $0.31 per share for an annualized dividend yield of 7.88%. With a current price-to-earnings ratio of 7.5 and trading at just 68% of book value, SL Green Realty may fit the profile of a value stock.
Credit Suisse initiated coverage of the REIT in June with a neutral rating and Mizuho Bank Ltd. initiated coverage in April, also with a neutral rating. The short float of 10% is notable — if shorts are ever forced to cover, that could fuel a rally.
Those are four real estate investment trusts offering monthly dividends. While it may be sweet to be the recipient of monthly rather than quarterly dividends, investors should always look deep and make sure the underlying REIT makes sense as a business.
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Not investment advice. For educational purposes only.
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