Real estate investors, especially of the conservative bent, attracted by dividend payouts can get three times the pleasure -- at least in quantity -- each year if they buy stock in equities that pay monthly instead of quarterly.
There are a lot of real estate investment trusts (REITs) on the roster of stocks that pay monthly dividends, and understandably so since that's what REITs are required to do to, well, be REITs.
By law, they have to pay out 90% of their taxable income directly to stockholders, and there are plenty of good choices for investors looking to bolster their income in an interest rate environment where guaranteed savings pay nearly nothing, and sometimes not even that.
Here are three monthly dividend REITs to consider in July.
AGNC Investment Corp.
AGNC Investment Corp. (NASDAQ: AGNC) is a mortgage REIT (mREIT), a unique flavor of REITs that invest in mortgages and mortgage-backed securities. In fact, they're considered financial stocks rather than real estate stocks like other REITs.
Check out this piece by our Liz Brumer for a deeper dissection of what AGNC does and why it does it, but topline: It does most of its business buying and selling different iterations of investments from Fannie Mae, Freddie Mac, and the like. Liz also makes the important point that this REIT is positioning itself for future dividend increases. That could lower the yield percentage -- depending on the stock price, naturally -- but further strengthen shareholder value. After all, it's not just yield one should be chasing.
AGNC has been paying $0.12 per share monthly for the past 15 months after cutting its payout from the $0.16 per share it had been paying since May 2019. Despite that and earlier cuts, AGNC is still yielding a strong 8.36% based on a June 26 closing price of $17.22 per share.
Gladstone Commercial (NASDAQ: GOOD) focuses on a mix of office and industrial tenants that has produced more than 10 years of continuous monthly cash dividends, during which time it has doubled its assets.
As of March 31, the company says, its portfolio includes 120 properties leased to 107 different tenants in 27 states. Gladstone Commercial says its portfolio has grown an average of 18% a year since its 2003 IPO and its occupancy has never dipped below 95%.
Gladstone Commercial's monthly payout of $0.12515 per share on June 17 marked 18 straight months at that level. That's slightly up from the $0.125 per month it paid from 2008 through 2019, and then $0.12 a month in 2006 and 2007. Its yield was 6.65% based on a June 26 closing price of $22.60 per share.
LTC Properties (NYSE: LTC) invests in senior housing and healthcare and relies on 30 operating partners it works with through sale-leasebacks, mortgage and construction financing, and multiple forms of structured finance solutions.
The company's portfolio currently comprises 177 investments in 27 states and is evenly split between senior housing and skilled nursing properties. It's a combination that should hold up well and position LTC for growth as the population ages and those needs increase.
LTC has been paying out $0.19 per share per month since October 2016, after paying $0.18 per share for a year and $0.17 per share from October 2013 through September 2015. That's good for a yield of 5.84% based on its June 26 closing price of $39.06 per share.
The Millionacres bottom line
Each of these REITs have long records of solid performance in their respective industries. Investors who want to rely on any of these for decent income yield without too much risk can probably do well by considering any or all of them.