Income-generating investments can be a great way to increase your income if you have extra cash savings but no time to take on a side gig. While bonds and bank CDs are the safest way to put that money to work generating income, they typically pay a fixed income stream. That's an issue with elevated inflation because it eats into the purchasing power of your income.

Dividend-paying stocks can solve this problem because many routinely increase their payouts, providing investors with some inflation protection. Agree Realty (ADC -0.48%), EPR Properties (EPR -0.32%), and Realty Income (O -0.17%) stand out because they have higher dividend yields and pay their dividends monthly instead of on the typical quarterly schedule. That enables their investors to collect more income on a recurring basis.

A retail-backed passive income stream

Agree Realty is a retail real estate investment trust (REIT). The company owns over 2,000 single-tenant properties net leased or ground leased to high-quality tenants. It focuses on tenants in durable industries resistant to threats from e-commerce and economic downturns. Its top tenants are grocery stores, home improvement, dollar stores, and tire and auto service centers.

The company's focus on utilizing net and ground leases enables it to produce very stable cash flow because tenants cover inflationary expenses like maintenance, real estate taxes, and insurance. That allows it to generate steady cash flow to pay its monthly dividend, which currently yields 5.4%.

The company has a very conservative dividend-payout ratio of 74% of its adjusted funds from operations (FFO). That gives it a nice cushion while allowing it to retain meaningful cash flow to fund new investments. 

Agree Realty has invested over $8 billion since 2010 in expanding its real estate portfolio. It makes acquisitions and invests in ground-up development projects. These investments have grown its cash flow. That has allowed Agree Realty to steadily increase its dividend. The REIT has raised its payout at a 5.9% compound annual rate over the last decade.

Agree has a conservative financial profile, which gives it the flexibility to continue expanding its real estate portfolio and dividend.

An entertainment-driven income stream

EPR Properties is a specialty REIT. It focuses on owning experiential real estate like theaters, attractions, and eat-and-play venues, and currently has over 360 properties across the U.S. and Canada, which include a small educational real estate portfolio. The REIT net leases these properties back to their operators under long-term contracts.

The company's net leases provide it with steady cash flow. Meanwhile, it has a reasonable dividend level (its FFO payout ratio will be 65% in 2023). That allows it to retain lots of cash to invest in acquiring and developing additional experiential real estate. 

EPR Properties is targeting to invest $200 million to $300 million this year. It spent $98.7 million on acquisitions and development projects through the first half of the year. Meanwhile, it lined up $224 million of future projects it expects to fund over the next two years. These investments will grow the REIT's cash flow, which should allow it to increase its dividend (which currently yields 7.8%) over time. 

A model of dividend consistency

Reality Income certainly lives up to its name. The REIT has paid 640 consecutive-monthly dividends throughout its history. Meanwhile, it has increased its dividend 122 times since its public market listing in 1994, growing it every year. 

A key to the REIT's strategy is investing in properties that produce durable income. It focuses on owning properties leased to companies in industries relatively immune to recessions and the pressure of e-commerce. Top-tenant categories include grocery, convenience, and dollar stores. The REIT also has a sizable industrial portfolio and a growing gaming portfolio. Like Agree Realty and EPR Properties, it uses net leases that provide stable income.

Realty Income pays out a reasonable proportion of its steady cash flow via dividends (76.5% of its adjusted FFO). That allows it to retain meaningful cash flow to fund new investments. Realty Income also boasts having an elite balance sheet, giving it additional financial flexibility to fund new investments. The company expects to invest over $6 billion this year in new income-producing real estate investments, which should help grow its cash flow and dividend. 

Excellent income producers

Agree Realty, EPR Properties, and Realty Income pay very attractive monthly dividends. They support those payouts with resilient real estate portfolios and strong financial profiles. Their financial strength allows them to expand their income-producing real estate portfolios and increase their dividends. That dividend growth makes them great stocks to buy to boost your income.