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Realty Income is a slow giant, but its 5.6% yield could be a cornerstone investment.
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Agree Realty competes with Realty Income but is much smaller, so its 4.3% yield comes with growth momentum.
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EPR Properties has a troubled dividend history, but its current yield of 7% is pretty strong.
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10 stocks we like better than Real Estate Income ›
Some dividend investors only focus on dividend yield. That’s not a bad thing, but you may also want to consider dividend frequency if you want to earn cash from your portfolio to cover living expenses.
Some companies only pay dividends once a year, which can be a budgeting nightmare. Other companies such as real estate income (NYSE: O), Agree real estate (NYSE:ADC)and Ethylene propylene rubber properties (NYSE: EPR)pay monthly, which makes budgeting a breeze. Here’s why you might want to check out these three real estate investment trusts (REITs).
Realty Income is one of the world’s largest real estate investment trusts. It is by far the largest competitor in the net lease space, where tenants are responsible for paying most property-level operating costs. The downside to being so big is that real estate income is a slow-growing business. That’s just basic math, as significant acquisition activity is required to grow a portfolio that already includes more than 15,500 properties.
However, if you are a conservative investor, Realty Income’s high 5.6% yield will pique your interest. It’s backed by an industry-leading company with an investment-grade balance sheet. And the monthly dividend payment has increased year by year for 30 consecutive years. You can build a portfolio in this type of dividend stock and use it to support investments in lower-yielding but faster-growing businesses.
Agree Realty is also a net lease REIT, but its market cap is about $8 billion, a fraction of industry giant Realty Income’s $50 billion market cap. This size difference is why investors may want to consider owning Agree Realty. Agree has a portfolio of approximately 2,600 single-tenant retail properties and should be able to operate around Realty Income on the growth side. It certainly has been doing that for the past decade.
To put the numbers into perspective, Realty Income has grown its dividend at 4.2% annually over the past 30 years. Agree Realty is a relatively young business that has increased its dividend at an annualized rate of about 6% over the past decade. Although only about 2 percentage points, dividend growth increased by about 50%.
As you might expect, investors are willing to pay a higher premium for Agree’s faster growth. Therefore, the dividend yield is “only” 4.3%. However, this is much higher than the yield you would earn from 1.1% S&P 500 Index index funds, remains above the broader REIT industry average of 3.9%. That said, pairing consent and real estate income in an investment portfolio can be a good choice.
EPR Properties may just attract more aggressive investors. It has the highest yield on this list at 7%. However, the REIT was forced to cut its dividend during the coronavirus pandemic as its portfolio is focused on experiential properties, including amusement parks and movie theaters. EPR Properties’ tenants were hit hard when the government shut down non-essential businesses.
However, the world has emerged from the impact of COVID-19. Today, EPR Properties reinstated its dividend, which has resumed growing. In the third quarter of 2025, the funds from operations (FFO) payout ratio was a reasonable 65%. The portfolio remains heavily exposed to the struggling movie theater business, which accounts for 37% of total rentals, so the transition remains a work in progress as management seeks to diversify its real estate portfolio. But for more aggressive investors, the balance of risk and reward now looks quite enticing.
If you’re looking for a reliable source of monthly dividend income, Real Estate Income will fit your needs. If you’re looking for more growth, Agree Realty may be a better choice. If you can handle a turnaround story, EPR Properties’ high yield might be right up your alley. However, no matter which stock you choose, you’ll generate the monthly dividends you need to streamline your budgeting process.
Before buying real estate income stocks, consider the following factors:
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Reuben Gregg Brewer is with Real Estate Revenue. The Motley Fool holds positions and recommends EPR Properties and Realty Income. The Motley Fool has a disclosure policy.
3 Stocks That Will Pay You a Check Every Month Originally published by The Motley Fool