Attractive Monthly Yields: Three REITs with Stable Dividends

For investors seeking regular monthly income, Real Estate Investment Trusts (REITs) offer an interesting opportunity. By law, they are required to distribute 90% of their taxable income to their shareholders. Three of these REITs have proven themselves with reliable monthly dividend payments and could certainly be an attractive addition to traditional index funds. EPR Properties primarily invests in so-called experiential properties, including amusement parks and cinemas. The monthly distribution amounts to $0.285 per share, resulting in an annual yield of 7.2%. After temporary suspensions during the global economic crisis and the pandemic, EPR returned to its monthly dividends in 2022. However, a risk is the significant dependence on cinemas, which have been under pressure since the pandemic. LTC Properties focuses on senior living facilities and nursing homes. The monthly dividend is $0.19 per share, with a yield of 6.4%. Unlike EPR, LTC recorded growth in revenue and FFO in the first half of 2024. The demographic development in the USA indicates a long-term high demand for LTC's services. Realty Income, known as "The Monthly Dividend Company," boasts an impressive series of 652 consecutive dividend payments. The focus is on retail and commercial properties. Despite an increase in net debt and shares issued in recent years, the management sees opportunities for further development and remains optimistic about the company's financial stability. These REITs represent not only the chance for regular dividends but also offer an opportunity to invest in the real estate market without having to manage properties themselves. Nevertheless, attention should be paid to the specific risks associated with each of these companies.