I'm on a mission to reach financial independence through passive income. Investing in high-yielding dividend stocks is a core piece of my strategy, so I tend to buy several dividend stocks each month as I have cash to invest. However, if I had to limit myself to just one high-yield dividend stock this July, Realty Income (O -0.07%) would be it. Here's why I think it's the quintessential income investment. Built to deliver dependable monthly dividendsRealty Income isn't like other real estate investment trus ...

Core Insights - Investing in dividend-paying stocks is an effective way to generate passive income, with Healthpeak Properties, Realty Income, and Stag Industrial highlighted as top choices for monthly dividends [1] Group 1: Healthpeak Properties - Healthpeak Properties is a REIT focused on the healthcare sector, leasing properties such as outpatient medical buildings and senior housing, providing stable rental income [3] - The company switched to a monthly dividend schedule in April, currently paying $0.10167 per share monthly, equating to an annual payout of $1.22, resulting in a yield of over 7% [4] - Healthpeak's latest dividend rate is 2% higher than in 2024, with an estimated financial flexibility of $500 million to $1 billion for future investments or share repurchases [5] Group 2: Realty Income - Realty Income, known as "The Monthly Dividend Company," declared its 659th consecutive monthly dividend in May, with a payout of $0.2685 per share in mid-June, yielding nearly 6% [6][7] - The company has raised its dividend 130 times since its public listing in 1994, maintaining a consistent increase for the past 110 quarters [8] - Realty Income plans to invest around $4 billion this year, supported by a low payout ratio of 75% of adjusted FFO, allowing for continued portfolio and payout growth [9] Group 3: Stag Industrial - Stag Industrial owns a diversified portfolio of industrial properties, paying about two-thirds of its cash flow in dividends, which allows for over $100 million annually for new investments [10] - The next monthly dividend of $0.12167 per share will be paid on July 15, providing a yield of over 4% at the current share price [10] - Stag Industrial plans to invest between $350 million and $650 million into new properties this year, focusing on stabilized properties and those with redevelopment potential [11] Group 4: Summary of Investment Opportunities - Healthpeak Properties, Realty Income, and Stag Industrial are identified as high-yielding monthly dividend stocks with potential for future growth, making them attractive options for passive income seekers [12]

Core Viewpoint - Investing in real estate can be accessible to individuals without significant wealth, particularly through dividend stocks like Realty Income, which offers monthly dividends to shareholders [1][2]. Company Overview - Realty Income is recognized as "The Monthly Dividend Company" and is a leading real estate investment trust (REIT) that provides monthly dividends [2][5]. - The company has a diverse portfolio consisting of 15,627 properties across the United States and seven other countries, focusing on tenants in consumer-facing, recession-proof businesses [5][6]. Financial Performance - Realty Income has a strong track record, having paid and raised its dividend for 32 consecutive years, including during significant economic downturns such as the Great Recession and the COVID-19 pandemic [6]. - The company's dividend payout ratio is 75% of its 2025 funds from operations (FFO) guidance, indicating a stable financial performance [6]. Investment Strategy - To generate $100 in monthly dividends from Realty Income, an investor would need to purchase approximately 373 shares, requiring an investment of around $20,701 at the current share price, given a dividend yield of 5.8% [7]. - Investors can start with any amount and reinvest dividends to accumulate shares over time, enhancing their dividend income [8]. Tax Considerations - Dividends from Realty Income are classified as nonqualified dividends, which are taxed as ordinary income at the investor's applicable tax bracket [10]. - It is advisable for investors to consider holding Realty Income or other REITs in tax-advantaged accounts to optimize their investment strategy [11].

Group 1 - STAG Industrial (NYSE: STAG) is an industrial REIT that offers monthly dividends, making it attractive to individual investors [1] - The author has previously expressed a bullish thesis on STAG Industrial and holds a personal investment in the company [1] - The focus of the author's investment strategy is on dividend investing, which is viewed as a straightforward path to financial freedom [2] Group 2 - The author has extensive experience in M&A and business valuation, having evaluated numerous businesses and participated in key transactions [2] - The sectors of focus for the author's investment and advisory work include technology, real estate, software, finance, and consumer staples [2] - The motivation for sharing insights on dividend investing is to help others navigate the process and build long-term wealth [2]

Most dividend stocks make quarterly payments. That can make it a bit challenging for those seeking regular passive income to help cover their monthly expenses. You'd need to buy dividend stocks with staggered payment schedules to help align your income with your monthly bills. A much easier option is to invest in monthly dividend stocks. Several companies, most notably real estate investment trusts (REITs), pay their dividends each month, including Agree Realty (ADC 0.07%), EPR Properties (EPR 0.10%), and S ...

Core Viewpoint - Realty Income is a real estate investment trust (REIT) that has consistently delivered dependable monthly dividends, with a current dividend yield exceeding 5.5% due to a recent 10% decline in share price from its 52-week high [1][3]. Dividend Performance - Realty Income has declared its 658th consecutive monthly dividend since its founding in 1969 and has raised its dividend 130 times since its public listing in 1994 [3]. - The REIT has increased its dividend for 110 straight quarters and 30 consecutive years, achieving a compound annual growth rate of 4.3% over the past three decades [3]. Investment Strategy - The company invests in a diversified real estate portfolio net leased to leading companies, providing stable rental income as tenants cover all operating expenses [4]. - Realty Income focuses on long-term leases with annual rental escalation clauses, ensuring durable rental income that increases each year [4]. Risk Management - Approximately 91% of Realty Income's rent comes from tenants in resilient sectors such as grocery stores and home improvement centers, which are less affected by economic downturns and e-commerce pressures [5]. - The REIT diversifies its portfolio by tenant, property type, and geography, with its top tenant contributing only 3.5% of total rent [5]. Growth Strategy - Realty Income invests billions annually to acquire additional income-generating net lease properties, which is a key driver of its dividend growth [6]. - The company maintains a conservative dividend payout ratio of less than 75% of its adjusted funds from operations, allowing for significant excess cash flow for reinvestment [7]. Financial Strength - Realty Income has an elite balance sheet, being one of only eight REITs in the S&P 500 with bond ratings of A3/A- or higher, facilitating access to lower-cost funding for acquisitions [8]. - The REIT engages in sale-leaseback transactions, often partnering with tenants for initial real estate transactions and subsequently acquiring additional properties [9]. Future Outlook - Many existing clients still own some of their real estate, providing Realty Income with a long runway for expanding its global real estate portfolio [10]. - The company is viewed as a foundational holding for investors seeking a reliable stream of passive income that is expected to continue rising [12].