It's probably not much of a surprise to you that most dividend stocks make quarterly payments to their shareholders. While this has been the industry standard for some time, it can be rather inconvenient for investors who rely on their dividend income to cover living expenses.

Fortunately, there are dozens of stocks that make monthly dividend payments, and the real estate sector has an especially high concentration of them. With that in mind, here are three equity real estate investment trusts (REITs) that not only make safe, monthly dividend payments, but could also deliver strong growth in your portfolio for years to come.


Recent Share Price

Dividend Yield

Realty Income (NYSE:O)



EPR Properties (NYSE:EPR)



LTC Properties (NYSE:LTC)



Data source: TD Ameritrade. Share prices and dividend yields as of July 1, 2017.

1. Realty Income

Net-lease retail REIT Realty Income actually has a trademark on the nickname "The Monthly Dividend Company." As of this writing, the company has paid 563 consecutive monthly dividends (almost 47 years), and has increased its payout at a 4.7% annualized rate since the company's 1994 NYSE listing, while generating 16.9% annualized total returns for its shareholders.

Man handing paycheck.

Image source: Getty Images.

How has Realty Income achieved such consistent income growth? First, it invests in the right type of retail properties, such as those occupied by tenants in recession-and e-commerce-resistant businesses, like drug stores, dollar stores, warehouse discount clubs, and convenience stores, to name just a few. Second, Realty Income's tenants are on long-term "net" leases which typically have initial terms of at least 15 years, with annual rent increases built in. The combination of these factors helps minimize vacancies and turnover, and generates steady, predictable, growing income.

2. EPR Properties

EPR Properties is a diversified REIT, meaning that in invests in more than one type of property, specializing in entertainment, recreation, and educational properties.

Investing thesis for the entertainment and recreation properties is that the roughly 75 million millennials in the U.S. value experiences over simply buying things, and as this group ages and their net worth increases, businesses that sell experiences will do well. Examples of major property types in EPR's portfolio include megaplex movie theaters, ski parks, golf facilities, and waterparks.

The education properties add a more defensive element to the portfolio, as schools are needed no matter what the economy is doing, and also have tremendous growth potential in the years to come. EPR focuses on public charter schools (for which more than 1 million U.S. students are on waiting lists, and the number of charter schools is expected to double in just seven years), private schools, and early childhood education facilities.

3. LTC Properties

Healthcare real estate could be an interesting opportunity over the next several decades for long-term investors. With the retirement of the baby boomer generation, the U.S. senior citizen population is expected to roughly double by 2050, which should create steady and rapid growth in demand for healthcare facilities.

Senior-specific healthcare could do especially well, and LTC Properties is a monthly dividend company that invests in skilled nursing and assisted living properties. As of this writing, the company owns just over 200 properties located in 29 U.S. states, operated by some of the best-known names in senior care such as Brookdale Senior Living. All of the company's owned properties are net leased, with initial terms of 10-15 years, with an average of 9.5 years remaining.

LTC Properties has grown significantly in recent years, with over $550 million invested in acquisitions and redevelopments during the past two years. And with more than $700 million in available liquidity, LTC Properties is well-positioned to take advantage of attractive growth opportunities as they come up.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.