In this article, we discuss 10 REIT stocks that pay monthly dividends.
For exposure to the real estate sector, the next best opportunity is to explore real estate investment trusts. The investment firm CFRA believes that with inflation at a 41-year high, investors should diversify their portfolios with REITs as an inflation hedge.
The Real Estate sector has declined approximately 3% year-to-date but its performance is ahead of the broader S&P 500 index, which was edging toward correction territory as of April 24, with a loss of 10% or more from recent highs. CFRA upgraded the real estate sector to Marketweight from Underweight.
There are two main categories of REITs – equity REITs and mortgage REITs. Equity REITs own and manage investment properties, typically leasing and renting out to tenants. Whereas mortgage REITs loan money to homeowners and operators in the form of mortgages and mortgage-backed securities, reaping interest from lending. After recovering from the pandemic-ridden years, REIT stock total returns are now in excess of 20%. Self storage and industrial REITs were the leading sub-sectors in terms of pandemic-to-date total return through November 2021.
REITs offer high dividend yields, and their legal structure demands that they distribute 90% of the income after tax to shareholders. This makes them attractive dividend options for a diversified income portfolio. Some real estate stocks gaining the attention of investors these days include The Home Depot, Inc. (NYSE:HD), Builders FirstSource, Inc. (NYSE:BLDR), and Lowe’s Companies, Inc. (NYSE:LOW). In this article, however, our focus would be on REIT stocks that pay monthly dividends.
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Our Methodology
We assessed the REIT space, selecting the companies that pay monthly dividends and offer attractive yields. We have mentioned the available analyst ratings and the hedge fund sentiment around the stocks. Dividend yields as of April 22 are mentioned for each stock.
REIT Stocks that Pay Monthly Dividends
10. Dynex Capital, Inc. (NYSE:DX)
Number of Hedge Fund Holders: 4
Dividend Yield as of April 22: 10.38%
Dynex Capital, Inc. (NYSE:DX) is a Virginia-based mortgage real estate investment trust that invests primarily in mortgage-backed securities that are backed by the United States government or a U.S. government-sponsored entity. Dynex Capital, Inc. (NYSE:DX) delivers a dividend yield of 10.38% as of April 22.
On April 12, Dynex Capital, Inc. (NYSE:DX) declared a $0.13 per share monthly dividend, in line with previous. The dividend is distributable on May 2, to shareholders of the company on the close of business on April 22.
Dynex Capital, Inc. (NYSE:DX) reported financial results for the fourth quarter of 2021 on February 3, posting earnings per share of $0.45, beating market consensus by $0.01. Revenue for the period jumped 8.27% year-over-year to $15.61 million, outperforming analysts’ predictions by $1.36 million. Cash and cash equivalents at the end of December 2021 increased to $366 million from $295.6 million in 2020, indicating the possible continuance of monthly dividend payments.
According to the fourth quarter database of Insider Monkey, Dynex Capital, Inc. (NYSE:DX) was found in the public stock portfolios of 4 elite hedge funds, compared to 7 funds in the earlier quarter. Billionaire Ken Griffin’s Citadel Investment Group is the biggest position holder in the company, with 86,657 shares worth $1.4 million.
In addition to The Home Depot, Inc. (NYSE:HD), Builders FirstSource, Inc. (NYSE:BLDR), and Lowe’s Companies, Inc. (NYSE:LOW), Dynex Capital, Inc. (NYSE:DX) is a notable dividend stock in the housing and real estate space.
9. Gladstone Land Corporation (NASDAQ:LAND)
Number of Hedge Fund Holders: 6
Dividend Yield as of April 22: 1.39%
Gladstone Land Corporation (NASDAQ:LAND) is a Virginia-based real estate investment trust that owns and operates a portfolio of farmland and farm-related properties based in significant American agricultural markets. These properties are leased to unrelated third-party farmers.
On February 24, B. Riley analyst Craig Kucera maintained a Buy recommendation on Gladstone Land Corporation (NASDAQ:LAND) and raised the firm’s price target on the shares to $32 from $31. According to the analyst, Gladstone Land Corporation (NASDAQ:LAND) continued to acquire significant assets in the fourth quarter of 2021, outperforming revenue estimates by and achieving greater economies of scale.
In its fiscal 2021 reports, Gladstone Land Corporation (NASDAQ:LAND) reported a revenue of $75.3 million, up approximately 32% from the prior-year revenue of $57 million. Similarly, the company’s cash and cash equivalents increased to $16.7 million in 2021 from $9.2 million in 2020, likely indicating continuing dividend payouts for the foreseeable future.
Gladstone Land Corporation (NASDAQ:LAND) declared on April 13 a $0.0454 per share monthly dividend, a 0.2% increase from its earlier dividend of $0.0453. The dividend is payable on April 29, to shareholders of record on April 22. The company offers a dividend yield of 1.39% as of April 22.
According to Insider Monkey’s database of elite funds, 6 hedge funds reported owning stakes in Gladstone Land Corporation (NASDAQ:LAND) at the end of December 2021, with collective stakes worth $15.8 million, compared to 7 funds in the prior quarter, holding stakes in Gladstone Land Corporation (NASDAQ:LAND) valued at roughly $8 million. John Overdeck and David Siegel’s Two Sigma Advisors is a prominent shareholder of the company, with 164,600 shares worth $5.5 million.
8. Gladstone Commercial Corporation (NASDAQ:GOOD)
Number of Hedge Fund Holders: 6
Dividend Yield as of April 22: 6.71%
Gladstone Commercial Corporation (NASDAQ:GOOD) has never skipped, slashed, or deferred a monthly dividend distribution since its inception in 2003. It operates as a real estate investment trust that acquires and operates net leased industrial and office properties across the United States. Gladstone Commercial Corporation (NASDAQ:GOOD) is headquartered in McLean, Virginia. The REIT reported on April 5 that 100% of March rents were paid and collected, with portfolio occupancy at 97%.
On March 16, EF Hutton analyst Gaurav Mehta initiated coverage of Gladstone Commercial Corporation (NASDAQ:GOOD) with a Buy rating and a $24 price target. According to the analyst, Gladstone Commercial Corporation (NASDAQ:GOOD) has heightened its exposure to industrial real estate via acquisitions in the last few years. His Buy recommendation is a result of this increased exposure, the REIT’s improved operating performance in 2021, and balance sheet improvements.
Gladstone Commercial Corporation (NASDAQ:GOOD) declared on April 13 a per share monthly dividend of $0.1254. The dividend is payable on April 29, for shareholders of record on April 22. Gladstone Commercial Corporation (NASDAQ:GOOD)’s dividend yield on April 22 stood at 6.71%.
Among the hedge funds tracked by Insider Monkey, 6 funds reported owning long positions in Gladstone Commercial Corporation (NASDAQ:GOOD) at the end of December 2021, with combined stakes worth $59.3 million. Jim Simons’ Renaissance Technologies is the largest position holder in the company, with more than 2 million shares valued at $53.4 million.
7. LTC Properties, Inc. (NYSE:LTC)
Number of Hedge Fund Holders: 8
Dividend Yield as of April 22: 6.31%
LTC Properties, Inc. (NYSE:LTC) is a real estate investment trust based in Westlake Village, California, investing in seniors housing and healthcare properties across the United States. The company offers sale-leasebacks, mortgage financing, and structured finance solutions such as preferred equity and mezzanine lending.
On March 14, RBC Capital analyst Michael Carroll upgraded LTC Properties, Inc. (NYSE:LTC) to Sector Perform from Underperform, lifting the price target to $37 from $34. The analyst noted that LTC Properties, Inc. (NYSE:LTC) has made notable progress addressing tenant issues over the past few years and he now sees more earnings upside from the stabilization of existing assets than downside from potential new tenant issues.
LTC Properties, Inc. (NYSE:LTC) declared on April 1 a $0.19 per share monthly dividend, in line with previous. The dividend is payable on April 29, to shareholders of record on April 21. LTC Properties, Inc. (NYSE:LTC)’s dividend yield on April 22 stood at 6.31%.
LTC Properties, Inc. (NYSE:LTC) announced the acquisition of four LuxeRehab centers for almost $52 million on April 4. The properties are based in Texas and collectively offer 339 beds in private rooms. The centers will be managed by Ignite Medical Resorts, an operating partner of LTC Properties, Inc. (NYSE:LTC). The company expects to receive rent of approximately $1 million in the third and fourth quarters of 2022 each, and approximately $4.3 million during 2023.
Among the hedge funds tracked by Insider Monkey, 8 funds were bullish on LTC Properties, Inc. (NYSE:LTC) at the end of the fourth quarter of 2021, with combined stakes worth $7.19 million. Matthew Crandall Gilman’s Hill Winds Capital is the largest shareholder of the company, with 62,500 shares valued at $2.13 million.
6. Whitestone REIT (NYSE:WSR)
Number of Hedge Fund Holders: 11
Dividend Yield as of April 22: 3.68%
Whitestone REIT (NYSE:WSR) is a Texas-based real estate investment trust that owns, acquires, and manages neighborhood shopping centers primarily in affluent markets across the Sunbelt. The REIT has consistently paid dividends for over 15 years. On April 6, Colliers analyst David Toti initiated coverage of Whitestone REIT (NYSE:WSR) with a Buy rating and a $15 price target.
On February 22, Whitestone REIT (NYSE:WSR) declared a $0.04 per share monthly dividend, an 11.6% increase from its earlier dividend of $0.0358. The dividend was distributed on April 15, and the next payment is scheduled on May 12, for shareholders of record on May 3.
Whitestone REIT (NYSE:WSR)’s full-year revenue for 2021 came in at $126.1 million, compared to $119 million in the last year. Net income in 2021 stood at $12 million, a 100% increase from the 2020 net income of $6 million.
According to the fourth quarter database of Insider Monkey, 11 hedge funds were bullish on Whitestone REIT (NYSE:WSR), compared to 13 funds in the prior quarter. James Dondero’s Highland Capital Management held the biggest stake in the company, with 2.2 million shares worth roughly $23 million.
Elite investors are piling into Whitestone REIT (NYSE:WSR) for exposure to the housing market, just like The Home Depot, Inc. (NYSE:HD), Builders FirstSource, Inc. (NYSE:BLDR), and Lowe’s Companies, Inc. (NYSE:LOW).
5. Generation Income Properties, Inc. (NASDAQ:GIPR)
Number of Hedge Fund Holders: N/A
Dividend Yield as of April 22: 8.82%
Based in Tampa, Florida, Generation Income Properties, Inc. (NASDAQ:GIPR) is a real estate investment trust that owns and operates high quality single tenant properties, leasing to industrial and retail investment-grade customers. Generation Income Properties, Inc. (NASDAQ:GIPR)’s dividend yield on April 22 came in at 8.82%.
Generation Income Properties, Inc. (NASDAQ:GIPR) declared on April 7 a $0.054 per share monthly dividend, in line with previous. The dividend is payable on April 30, to shareholders of the company as of April 15.
On March 11, Generation Income Properties, Inc. (NASDAQ:GIPR) acquired leasehold interest in a single-tenant retail chain department store in Tucson, Arizona for approximately $7.3 million. The acquisition was funded with 50% cash and 50% debt. The building is rented out to Kohl’s Corporation (NYSE:KSS) and the lease generates about $824,000 of annualized gross base rent and an annual net rent of roughly $591,000 after payments are made under the ground lease.
4. Apple Hospitality REIT, Inc. (NYSE:APLE)
Number of Hedge Fund Holders: 22
Dividend Yield as of April 22: 3.33%
Apple Hospitality REIT, Inc. (NYSE:APLE) is a Virginia-based real estate investment trust that owns and operates a portfolio of upscale hotels in the United States. The REIT leases out properties to industry leading brands such as Marriott, Hyatt, and Hilton, among others.
On April 21, Oppenheimer analyst Tyler Batory initiated coverage of Apple Hospitality REIT, Inc. (NYSE:APLE) with an Outperform rating and a $23 price target. The company is positioned well due to its high-quality and geographically diverse portfolio of select-service hotels, said the analyst. Apple Hospitality REIT, Inc. (NYSE:APLE) was the first lodging REIT to pay a meaningful dividend to shareholders and the analyst believes Apple Hospitality REIT, Inc. (NYSE:APLE) will buy significant net assets in 2022.
In 2021, Apple Hospitality REIT, Inc. (NYSE:APLE)’s full-year revenue equaled approximately $934 million, up from $602 million in 2020. Net income of $18.8 million in 2021 sharply rebounded from the net loss of $173.2 million in the prior year.
Apple Hospitality REIT, Inc. (NYSE:APLE) on April 21 announced a $0.05 per share monthly dividend, which is payable on May 16, to shareholders of the company as of May 3. On April 22, Apple Hospitality REIT, Inc. (NYSE:APLE)’s dividend yield stood at 3.33%.
Apple Hospitality REIT, Inc. (NYSE:APLE) was found in the public investment portfolios of 22 hedge funds at the end of December 2021, up from 15 funds in the prior quarter. Michael Weinstock’s Monarch Alternative Capital held the leading stake in the REIT, with 5.2 million shares worth $85.3 million.
3. STAG Industrial, Inc. (NYSE:STAG)
Number of Hedge Fund Holders: 22
Dividend Yield as of April 22: 3.55%
STAG Industrial, Inc. (NYSE:STAG) is a Massachusetts-based REIT that owns and manages single-tenant, industrial properties throughout the United States. The stock delivers a dividend yield of 3.55% as of April 22.
On January 11, Baird analyst David Rodgers upgraded STAG Industrial, Inc. (NYSE:STAG) to Outperform from Neutral but lowered the price target to $48 from $49, as part of a broader note on the Industrial REIT outlook in 2022. Industrial REITs remain a longer-term core holding with “even moderate goods inventory assumptions supporting growth”, but in the short-term investors can possibly find the sub-sector more challenging.
STAG Industrial, Inc. (NYSE:STAG) declared on April 14 a $0.1217 per share monthly dividend, in line with previous. The dividend is payable on May 16, to shareholders of record on April 29.
According to Insider Monkey’s Q4 data, 22 hedge funds were long STAG Industrial, Inc. (NYSE:STAG), up from 17 funds in the preceding quarter. The total stakes owned in the fourth quarter amounted to $525.3 million. Stuart J. Zimmer’s Zimmer Partners held the leading position in the company, with 2.85 million shares worth $136.6 million.
2. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Holders: 26
Dividend Yield as of April 22: 3.90%
Agree Realty Corporation (NYSE:ADC) is a real estate investment trust that is based in Bloomfield Hills, Michigan, leasing properties to industry-leading retail tenants. Agree Realty Corporation (NYSE:ADC) offers a dividend yield of 3.90% as of April 22.
In 2021, Agree Realty Corporation (NYSE:ADC)’s full-year revenue stood at $339.3 million, up from $248.6 million in the earlier quarter. Net income in 2021 increased to $122.3 million from $91.4 million in 2020.
Morgan Stanley analyst Ronald Kamdem on April 1 initiated coverage of Agree Realty Corporation (NYSE:ADC) with an Overweight rating and a $75 price target. The company’s tenant quality is the highest among triple net REITs and its core focus on internet-resistant tenants is differentiated, the analyst told investors in a research note. The analyst sees an attractive entry point with the stock’s premium multiple having derated 40% post-COVID.
On April 13, Agree Realty Corporation (NYSE:ADC) declared a $0.234 per share monthly dividend, a 3.1% increase from its prior dividend of $0.227. The dividend is payable on May 13, for shareholders of record on April 29.
According to the fourth quarter database of Insider Monkey, 26 hedge funds were long Agree Realty Corporation (NYSE:ADC), up from 20 funds in the previous quarter. Israel Englander’s Millennium Management is the largest stakeholder of the company, with 1.17million shares worth $83.5 million.
1. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 30
Dividend Yield as of April 22: 3.99%
Realty Income Corporation (NYSE:O) offers long-term lease agreements to commercial clients in the United States. It is an S&P 500 company that has increased its dividend 115 times since it publicly listed in 1994. Realty Income Corporation (NYSE:O)’s yield on April 22 stood at 3.99%. Wolfe Research analyst Andrew Rosivach upgraded Realty Income Corporation (NYSE:O) to Outperform from Peer Perform on March 15.
On April 13, Realty Income Corporation (NYSE:O) declared a $0.247 per share monthly dividend. The dividend is distributable on May 13, to shareholders of the company as of May 2.
Realty Income Corporation (NYSE:O) on April 1 priced its private placement offering of £140 million senior unsecured notes due 2030, £345 million senior unsecured notes due 2032, and £115 million senior unsecured notes due 2037. The notes have an average tenure of 10.5 years and weighted average fixed interest rate of 3.22%.
According to Insider Monkey’s fourth quarter database, 30 hedge funds were bullish on Realty Income Corporation (NYSE:O), up from 22 funds in the preceding quarter. The total stakes held in Q4 2021 amounted to approximately $399 million. Matthew Barrett’s Glendon Capital Management is the largest shareholder of the company, with a position worth roughly $133 million.
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Disclosure: None. 10 REIT Stocks that Pay Monthly Dividends is originally published on Insider Monkey.
