When you retire on dividends, you need to make some material budgeting changes, since most dividends are paid quarterly. However, there are some companies that pay monthly, which is pretty much as close to a paycheck replacement as you'll get on Wall Street.
If that sounds interesting to you, you might want to consider high yielders like Realty Income (O -1.01%), EPR Properties (EPR -1.45%), and LTC Properties (LTC -0.97%). Here's a look at each of these monthly pay real estate investment trusts (REITs).
1. Realty Income is the bellwether net lease REIT
Realty Income is a fairly boring real estate investment trust (REIT) that is most likely to provide investors with slow and steady growth over time. That could be a good thing if you are conservative, particularly considering the lofty 5.3% dividend yield. In comparison, the S&P 500 (^GSPC 0.58%) is offering a yield of around 1.2%, and the average REIT's yield is about 3.9%. The dividend is paid monthly.
The big story here is Realty Income's size, with over 15,600 properties. It's the largest net lease REIT by a wide margin. A net lease requires the tenant to pay for most property-level operating costs. This is a fairly low-risk approach in the REIT space. Meanwhile, Realty Income adds diversification to the mix, with assets spread across various property types and geographic regions. It's one of the most diverse REITs you can buy.
For most dividend investors, however, the most attractive thing will probably be Realty Income's 30-year streak of annual dividend increases. A reliable monthly pay tortoise like Realty Income can provide a solid income foundation for your retirement portfolio.
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2. EPR Properties is getting back to dividend growth
EPR Properties also employs the net lease model, but its focus is on owning experiential properties. The REIT went through a very difficult period during the coronavirus pandemic's height, as many of its tenants were effectively shut down. It ended up suspending its dividend to ensure it had enough cash flow to help its tenants survive that unusual health event. The dividend came back in 2021, at a lower level, and started to grow again in 2022.
EPR is really something of a turnaround story, as the pandemic highlighted an important weakness in the portfolio. Simply put, the company's founding left it with an oversized exposure to movie theaters. That business has struggled for some time, especially during the pandemic. That's why EPR is actively looking to reduce its exposure to this experiential property type. This is not a one-year effort and is likely to continue for at least several more years, since movie theaters still make up more than a third of the portfolio.
However, for those with a little more risk tolerance, the 6.4% yield might be worth it. The truth is, the turnaround effort is fairly well along. The adjusted funds from operations (FFO) payout ratio was a reasonable 70% or so in the second quarter of 2025. The risk profile of this monthly dividend payer probably isn't as bad as some on Wall Street seem to fear.
3. LTC Properties is about to see material demand growth
The last landlord here is LTC Properties, which is a bit different from Realty Income and EPR Properties. LTC Properties' dividend has been static for years. But that includes the very difficult pandemic period, in which its senior housing focus was severely tested. Not cutting its dividend during that time period speaks volumes about the business and the importance that the board of directors puts on providing shareholders with reliable dividends.
The big attraction with LTC Properties right now is the ongoing recovery from the pandemic downturn that is taking place in the senior housing sector. But it isn't just a recovery -- the number of seniors is growing more rapidly than any other demographic group. This means that demand is actually rising for the types of properties that LTC Properties owns.
What's especially interesting here is that LTC Properties is leaning into the growth opportunity. It's starting to invest in SHOP assets, which are properties that it both owns and operates (technically, it hires property managers to do the day-to-day work). A SHOP property's financial results flow directly through to the REIT's income statement. That means that an improving senior housing market will have even more effect on the REIT's financial results. For some investors, that may make the lofty 6.5% yield on offer the right one to buy.
Three options for investors looking for monthly dividends
If you are conservative, Realty Income is one of the best monthly pay stocks you will likely find. If you're into turnaround stories, EPR Properties will probably be of interest to you. And if you like a story that could be shifting from value to growth, LTC Properties might be the right monthly pay dividend option to add to your portfolio. In the end, at least one of these high-yielders will likely interest you enough to buy it.
