ConservativeRealty Income Corp ( O ) styles itself as "the Monthly Dividend Company." In my opinion, this retail real estate investment trust (REIT) is a standout performer. Realty Income has paid its investors like clockwork for 559 consecutive months and raised its dividend for 77 consecutive quarters. This REIT has raised its dividend at a 4.7% annual clip for over three decades running.
Small capStag Industrial Inc (STAG) is a small-cap REIT that I have had in my portfolio for several years, but it's a REIT that most investors have never heard of. STAG acquires single-tenant properties in the industrial and light manufacturing space. A warehouse or small factory would be a typical property for the REIT. STAG has enjoyed strong growth since it went public in 2011, expanding its portfolio 369% to 314 properties in 37 states. And unlike a glitzy hotel or office building, STAG's gritty industrial properties don't require a lot in terms of maintenance and upkeep. At current prices, STAG yields about 5.8%, which is a respectable yield for an REIT these days, in my view. If you don't need the dividend for current living expenses, instruct your broker to reinvest the dividends. A few years from now, if this trend continues, you may have a much larger share count … and a much larger monthly dividend, in my opinion.
SeniorsAmong monthly dividend stocks, in my opinion few have better demographic prospects than health and senior-living REIT LTC Properties Inc (LTC). The entire 200-plus-property portfolio is invested in skilled nursing and assisted-living facilities spanning 30 states. Health and senior living aren't exactly the most exciting markets, but in my opinion they have stable and growing demand due to the aging of the baby boomers. LTC sports a dividend yield of 5.1%. And while that's not mouthwateringly high, I believe that it's not bad given the low yields available in the bond market.
QuirkyAnother REIT worth a look in my view is EPR Properties (EPR). This REIT specializes in quirky, nontraditional assets, including properties like golf driving ranges, movie theaters, water parks, ski parks and private schools. You have to have specialized knowledge to successfully invest in these sorts of properties, and very few managers have it. In my view, this gives EPR a competitive advantage and allows it to grab higher yields than it would normally find in more traditional properties. But at the same time, the strangeness of the portfolio also tends to be a turn-off to a lot of money managers accustomed to analyzing apartment or office REITs. This has a way of depressing the share price and giving us an attractive entry point. EPR yields 5.8% in dividends, and it has raised its dividend at a 7% rate. That's pretty good, if I do say so myself. Photo Credit: Steve Parker via Flickr Creative Commons Charles Sizemore owns all of the stocks discussed in this article. Past performance is no guarantee of future results. This is only a partial list of the adviser's recommendations. Charles Sizemore will furnish a list of all recommendations made within the immediately preceding 12 months upon request. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed herein. There is no guarantee that the companies issuing the stocks discussed in this article will declare dividends in the future or that, if the dividends are declared, they will remain at current levels or increase over time.
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