There are only about 50 publicly traded stocks that pay monthly dividends, and among that group, only about a dozen are real estate investment trusts (REITs).
I'm saying "about" here because the exact number changes each time one of those companies eliminates or restores a dividend or changes the frequency of payouts.
That said, there are certainly some that have long records of monthly dividends and present a nice portfolio option for the conservative-minded real estate investor with an eye toward steady income with a limited -- but not absent -- appetite for risk. (If you have no appetite at all, stocks probably aren't for you anyway.)
The group may be small, but it's not monolithic. For your September shopping pleasure, below we take a quick look at three REITs that are in very different niches but have the performance chops to merit serious consideration.
Armour Residential REIT
Armour Residential REIT (NYSE: ARR) is a mortgage REIT (mREIT) that invests exclusively in residential mortgage securities issued or guaranteed by entities backed by the U.S. government, such as Fannie Mae, Freddie Mac, and Ginnie Mae.
Our own Liz Brumer lays out some pitfalls of this particular REIT's strategies, but if you believe there's no mortgage foreclosure crisis coming anytime soon, this is one high-yielding issue that rewards you monthly.
Armour stock was yielding 11.05% -- that's not a typo -- based on a Sept. 1 stock price of $10.86 per share. Based in Vero Beach, Florida, Armour has been paying $0.10 per share monthly since July 2020.
SL Green (NYSE: SLG) lays claim to being the largest landlord for office space in one of the most expensive markets for commercial real estate in the world: Manhattan. As of June 30, that meant interests in 77 buildings totaling 35.3 million square feet.
While that can be either a good or a bad thing, the big office REIT has handled the pandemic fairly well. However, its fortunes, of course, could swing depending on how the coronavirus and return-to-the-office issues play out.SL Green stock was yielding 5.19% based on a Sept. 1 stock price of $71.47 per share. Located in New York, SL Green has kept its monthly payout of $0.303 per share steady all year, after raising it from $0.295, where it held for nearly all of 2020.
STAG Industrial (NYSE: STAG) is a full-service real estate company that owns and manages single-tenant industrial properties, including 501 buildings in 39 states as of the second quarter.
This industrial REIT was founded in 2010 and has developed a diversified business plan that, rather than focusing on a small group of tenants or activities -- such as logistics -- spans a wide spectrum of geography, tenant, and industry.
STAG stock was yielding 3.43% based on a Sept. 1 stock price of $42.42 per share. Based in Boston, STAG has inched up its monthly payout from $0.10 per share in October 2013 to the $0.121 per share it's paid since January of this year.
The Millionacres bottom line
None of these three real estate stocks are risk-free, of course, but each carries its own risks based on its industry and portfolio. For instance, investors in Armour do take on interest rate and mortgage risk while chasing that big yield, one of three common REIT investing mistakes.
SL Green's fortunes, meanwhile, lie in the big questions around the downtown office and other CRE spaces in general. Industrial real estate is in a heated market right now -- which can always change, and that could particularly affect STAG stock. But in the meantime, these are good issues to consider for monthly payouts. You can always bail out if you get uncomfortable with any of them, right?