If you’re seeking reliable, recurring passive income, then Real Estate Investment Trusts (REITs) that pay monthly dividends might be the perfect fit for your investment portfolio. Unlike traditional stocks that pay quarterly, monthly dividend REITs provide more frequent income, ideal for retirees, income-focused investors, and anyone building cash flow.
In this guide, we’ll explore the top monthly dividend REITs, how they work, their pros and cons, and tips to invest smartly in 2025.
📌 What Are Monthly Dividend REITs?
Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-producing real estate. These can include residential properties, commercial real estate, storage units, hospitals, malls, or even data centers.
REITs that pay monthly dividends are a subset that distribute earnings every month instead of quarterly — making them more attractive for those seeking regular income.
📈 Why Monthly Dividend REITs Matter
| Benefit | Description |
|---|---|
| Regular Cash Flow | Ideal for budgeting and retirees |
| Compounding Opportunity | Faster dividend reinvestment |
| Lower Market Volatility | Steady payouts during market turbulence |
| Tax Advantages | REIT dividends are taxed differently, often favorable for investors |
| Real Estate Exposure | Gain exposure to property markets without owning physical real estate |
🏆 Top REITs That Pay Monthly Dividends in 2025
Here are some of the best-performing and reliable monthly dividend REITs to consider:
1. Realty Income Corporation (NYSE: O)
“The Monthly Dividend Company”
- Dividend Yield: ~5.4%
- Market Cap: $42 Billion
- Property Type: Retail, industrial, healthcare
- Monthly Dividend: Yes, since 1994
Why Invest: Realty Income is the gold standard for monthly dividend REITs. With over 13,000 properties under long-term leases, it provides consistent cash flow and strong tenant diversification.
✅ Ideal for long-term investors seeking stability and monthly income.
2. STAG Industrial Inc. (NYSE: STAG)
Focused on Industrial Properties
- Dividend Yield: ~4.0%
- Market Cap: $6 Billion
- Property Type: Warehouses, logistics, industrial
- Monthly Dividend: Yes
Why Invest: With the rise of e-commerce and logistics, STAG has seen solid demand. It leases to companies like Amazon and FedEx, ensuring stable cash flow and long-term growth.
3. LTC Properties Inc. (NYSE: LTC)
Senior Housing and Healthcare REIT
- Dividend Yield: ~6.2%
- Market Cap: $1.5 Billion
- Property Type: Assisted living and skilled nursing
- Monthly Dividend: Yes
Why Invest: As the population ages, demand for elder care is increasing. LTC Properties provides exposure to this recession-resistant sector, making it attractive for conservative investors.
4. EPR Properties (NYSE: EPR)
Experiential Real Estate REIT
- Dividend Yield: ~7.8%
- Market Cap: $3.7 Billion
- Property Type: Movie theaters, ski resorts, amusement parks
- Monthly Dividend: Yes
Why Invest: EPR pays one of the highest yields among monthly REITs, though it carries higher risk due to its leisure-focused properties. A good pick for risk-tolerant income seekers.
5. Pembina Pipeline Corporation (NYSE: PBA)
Energy Infrastructure REIT
- Dividend Yield: ~5.6%
- Market Cap: $25 Billion
- Property Type: Pipelines, storage terminals
- Monthly Dividend: Yes
Why Invest: While technically a Canadian infrastructure company, Pembina acts like a REIT and pays monthly income. It’s a great way to gain exposure to energy infrastructure.
🧾 Table: Monthly Dividend REITs Comparison (2025)
| Company | Ticker | Yield | Sector | Risk Level | Monthly Since | Ideal For |
|---|---|---|---|---|---|---|
| Realty Income | O | 5.4% | Retail/Industrial | Low | 1994 | Stability, Long-term income |
| STAG Industrial | STAG | 4.0% | Industrial | Medium | 2013 | Growth + income |
| LTC Properties | LTC | 6.2% | Healthcare | Medium | 2006 | Defensive sector |
| EPR Properties | EPR | 7.8% | Experiential | High | 2007 | High yield, risk-tolerant |
| Pembina Pipeline | PBA | 5.6% | Energy Infra | Medium | 1997 | Diversification |
🏗️ How to Evaluate Monthly Dividend REITs
Here are key factors to consider before investing:
1. Dividend History
Check for consistent monthly payouts, ideally over several years. Look for companies that never missed a payment, even during crises.
2. AFFO (Adjusted Funds From Operations)
This is the REIT equivalent of earnings. A healthy AFFO payout ratio under 90% is ideal for sustainability.
3. Property Type & Tenant Quality
High-quality tenants and long-term leases reduce risk. For example, O’s tenants include Walgreens, FedEx, and 7-Eleven.
4. Geographic Diversification
REITs with properties spread across multiple regions reduce the impact of local downturns.
5. Balance Sheet Strength
Look for low debt-to-equity ratios and good credit ratings.
💡 How to Invest in Monthly Dividend REITs
There are multiple ways to invest in monthly REITs:
| Method | Pros | Cons |
|---|---|---|
| Buy Individual Stocks | Direct control, higher returns | Requires research & monitoring |
| REIT ETFs | Diversification, ease of use | Lower yield |
| Robo-Advisors | Hands-off investing | Management fees apply |
| REIT Mutual Funds | Professional management | Less flexible |
🧠 Tip: Combine a few individual REITs with an ETF like Schwab U.S. REIT ETF (SCHH) or Vanguard Real Estate ETF (VNQ) for a balanced approach.
🧮 REIT Dividend Example: Monthly Income Estimator
Let’s say you invest $25,000 in Realty Income (O):
| Investment | Yield | Monthly Income |
|---|---|---|
| $25,000 | 5.4% | ~$112.50 |
If reinvested monthly, this income can compound significantly over the years.
⚠️ Risks of Monthly Dividend REITs
Like all investments, monthly dividend REITs come with some risks:
1. Interest Rate Sensitivity
Higher interest rates can make REITs less attractive and increase borrowing costs.
2. Market Volatility
While REITs are generally more stable, market corrections can still affect their stock price.
3. Tenant Risk
If a REIT’s major tenants go bankrupt or miss payments, dividends could be reduced.
4. Sector-Specific Risks
For example, EPR depends on leisure & entertainment, which is cyclical and impacted by consumer trends.
🔍 Tax Considerations
REIT dividends are usually taxed as ordinary income, not qualified dividends. However, under U.S. tax law (Section 199A), investors can deduct up to 20% of REIT dividends.
💡 For tax efficiency, hold REITs in Roth IRAs or other tax-advantaged accounts when possible.
📈 Monthly Dividend REIT ETFs to Consider
If you’d rather not pick individual REITs, here are ETFs with monthly distributions:
| ETF Name | Ticker | Yield | Type |
|---|---|---|---|
| Global X SuperDividend REIT ETF | SRET | 8.1% | High-Yield Global |
| Invesco KBW Premium Yield REIT ETF | KBWY | 7.3% | U.S. Small-Mid Cap |
| iShares Preferred and Income Securities ETF | PFF | 5.8% | REIT + Preferred Stocks |
🔮 Outlook for Monthly Dividend REITs in 2025
- Interest Rate Cuts Expected: This should boost REIT valuations.
- Continued Urbanization: Demand for real estate remains strong.
- E-commerce Growth: Favors industrial and logistics REITs.
- Aging Population: Supports healthcare REITs like LTC.
Experts predict steady growth in monthly dividend REITs, especially those in logistics, healthcare, and diversified retail.
✅ Final Thoughts: Should You Invest in Monthly Dividend REITs?
If you’re looking for a steady stream of income, monthly dividend REITs are a solid choice. They offer real estate exposure, consistent payouts, and diversification across sectors. Whether you’re a retiree seeking stability or a young investor building cash flow, monthly REITs can be an essential part of a well-rounded portfolio.
