Two Dividend REITs That Deliver Monthly Income: A Comparative Analysis for Income Investors

Monthly Dividend Payments: Why They Matter

For those seeking consistent monthly income from equities, monthly paying dividend stocks present a compelling alternative to juggling multiple quarterly-paying positions. Rather than coordinating three separate investments with staggered payment schedules—a logistical challenge that demands tracking multiple companies with synchronized yields—a single monthly dividend stock simplifies portfolio management substantially.

Not all monthly paying dividend stocks are created equal, however. Consider AGNC Investment (NASDAQ: AGNC), which offers a tempting 14% yield but masks a troubling track record. This mortgage REIT has experienced steady dividend erosion and declining stock prices over the past decade, illustrating that high yields alone don’t guarantee reliable income. The distinction matters: a 14% payout that deteriorates year-over-year ultimately delivers less total wealth than a more modest but sustainable dividend structure.

Property-Based REITs: A Fundamentally Different Model

Realty Income (NYSE: O) and Agree Realty (NYSE: ADC) operate according to entirely different mechanics than specialized mortgage vehicles. Both companies function as traditional property holders, acquiring physical real estate assets and leasing them to commercial tenants through net-lease agreements. This structure offloads most property-level maintenance and operational costs directly to tenants, creating a lower-risk real estate investment pathway.

The scale and composition of their portfolios tell an interesting story:

• Realty Income commands the sector’s dominant position with more than 15,600 properties, benefiting from decades of institutional experience
• Agree Realty maintains a considerably smaller but vigorously expanding portfolio of approximately 2,600 assets

Yield Comparison and Historical Performance

Both companies distribute monthly, positioning them as practical solutions for retirees requiring regular income:

• Realty Income yield: 5.4% annually
• Agree Realty yield: 4.2% annually
• S&P 500 reference yield: 1.2% annually

Their dividend expansion trajectories diverge significantly. Realty Income has orchestrated consecutive annual dividend increases for three decades—an extraordinary testament to consistency—though this growth moderated to approximately 30% over the past ten years. Agree Realty follows a younger but accelerating path: approximately ten years of consecutive increases (transitioning to monthly payments in 2021) coupled with 60% dividend growth across the same decade.

This divergence reflects operational realities. Realty Income’s massive scale creates natural growth constraints; maintaining profitability across 15,600 properties leaves less room for dramatic expansion. Conversely, Agree Realty’s smaller asset base provides runway for more aggressive acquisition and dividend enhancement strategies.

Income Now Versus Income Tomorrow

The choice between these two monthly paying dividend stocks ultimately hinges on personal priority. Realty Income appeals to investors prioritizing immediate cash generation: the 5.4% yield substantially exceeds index alternatives and historical inflation rates. Its three-decade dividend streak provides psychological reassurance for conservative retirees.

Agree Realty attracts those willing to accept modestly lower current income (4.2% yield) in exchange for steeper long-term growth potential. With dividend growth running double that of Realty Income, future distributions could meaningfully exceed today’s baseline.

Building a Foundation

Neither option demands exclusivity. Both REITs possess sufficiently robust business fundamentals and operational scale to sustain their dividend commitments indefinitely. For many portfolio construction approaches, owning both creates a balanced income foundation—pairing Realty Income’s yield advantage with Agree Realty’s growth trajectory—upon which additional income strategies can be layered.

While other monthly paying dividend stocks and monthly-distribution ETFs exist in the marketplace, Realty Income and Agree Realty have demonstrated the combination of stability and dividend reliability that characterizes genuine foundational holdings rather than speculative yield vehicles.