Some dividend investors focus exclusively on dividend yields. That's not a bad thing, but if you are trying to generate cash from your portfolio to pay for living expenses, you may also want to consider dividend frequency.
Some companies pay only one dividend per year, which can be a budgeting nightmare. Other companies, like Realty Income (O 0.12%), Agree Realty (ADC 0.04%), and EPR Properties (EPR +0.84%), pay monthly, which makes budgeting a breeze. Here's why you might want to get to know these three real estate investment trusts (REITs).
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Realty Income is a foundational investment
Realty Income is one of the world's largest REITs. It is by far the largest competitor in the net lease space, where tenants are responsible for paying most property-level operating costs. The downside of being so large is that Realty Income is a slow-growing business. That's just basic math, given that it requires a lot of acquisition activity to grow a portfolio that already contains over 15,500 properties.
NYSE: O
Key Data Points
However, if you are a conservative investor, Realty Income's lofty 5.6% yield will be of interest to you. It is backed by an industry-leading company with an investment-grade-rated balance sheet. And the monthly pay dividend has been increased annually for 30 years. This is the kind of dividend stock on which you build a portfolio, using it to support investments in lower-yielding but faster-growing businesses.
Agree Realty is a growth story
Agree Realty is also a net lease REIT, but with a roughly $8 billion market cap, it is just a fraction of the size of $50 billion market cap industry giant Realty Income. That size difference is why investors may want to consider owning Agree Realty. With a portfolio of around 2,600 single-tenant retail properties, Agree should be able to run rings around Realty Income on the growth front. It most certainly has been doing just that over the past decade.
To put a number on that, Realty Income's dividend has increased at an annualized rate of 4.2% a year over the last 30 years. Agree Realty, a relatively young business, has increased its dividend at a rate of roughly 6% annualized over the past decade. That's around only 2 percentage points, but that's a roughly 50% uptick in dividend growth.
NYSE: ADC
Key Data Points
As you might expect, investors are affording Agree a higher premium because of its more rapid growth. Thus, the dividend yield is "just" 4.3%. However, that's far above the 1.1% yield you'd collect from an S&P 500 index fund and still higher than the 3.9% average of the broader REIT sector. That said, pairing Agree and Realty Income in a portfolio could be a great choice.
EPR Properties is getting better day by day
EPR Properties is likely to appeal only to more aggressive investors. It has the highest yield on this list, at 7%. However, the REIT was forced to cut its dividend during the coronavirus pandemic, as its portfolio is focused on experiential properties, including amusement parks and movie theaters. When the government shut down nonessential businesses, EPR Properties' tenants were hit very hard.
NYSE: EPR
Key Data Points
However, the world has moved on from COVID-19. Today, EPR Properties has reinstated its dividend, which has returned to growth. And the funds from operations (FFO) payout ratio was a reasonable 65% or so in the third quarter of 2025. The portfolio is still heavily exposed to the struggling movie theater business, at 37% of the rent roll, so this turnaround remains a work in progress as management looks to diversify its property portfolio. But for more aggressive investors, the risk versus reward balance looks fairly enticing today.
Monthly pay options at your disposal
If you are looking for a reliable source of monthly dividend income, Realty Income will meet your needs. If you prefer a bit more growth, Agree Realty may be the better choice. And if you can handle a turnaround story, EPR Properties' lofty yield might be right up your alley. Whichever stocks you choose, however, you'll be generating the monthly dividends you need to simplify your budgeting process.
