3 Monthly Dividend REITs For Reliable Income And Long-Term Growth

In an era of economic uncertainty and volatile markets, investors increasingly seek stable income streams coupled with growth potential. Real Estate Investment Trusts (REITs), particularly those offering monthly dividends, have emerged as a compelling solution. Among them, three stand out for their proven track records, robust dividend policies, and strategic positioning to capitalize on long-term trends: Realty Income (O), Agree Realty (ADC), and STAG Industrial (STAG).

1. Realty Income (O): The "Monthly Dividend Company"

Realty Income is the gold standard in monthly dividend REITs, with an unbroken streak of 56 years of monthly payouts and 29 years of annual dividend increases. As of 2025, its 5.6% dividend yield is bolstered by a fortress balance sheet, an A- credit rating, and a portfolio of over 15,600 properties leased to 1,000+ tenants across 90 industries.

Key Strengths:
- Diversification: Half its tenants hold investment-grade credit ratings, and occupancy has never dipped below 96%, even during crises.
- Strategic Evolution: Expanding into high-growth sectors like self-storage, data centers, and renewable energy now accounts for 22% of rental revenue.
- Financial Discipline: A conservative payout ratio and long-term leases (averaging 14.7 years) ensure stability.

While Realty Income’s 2025 FFO growth guidance is modest (0.7%–2.2%), its scale and diversification make it a pillar of reliability. Investors seeking steady income and capital preservation should prioritize this REIT.

2. Agree Realty (ADC): Conservative Growth in Essential Sectors

Agree Realty focuses on single-tenant net-leased properties for essential businesses—think Walmart, Dollar General, and CVS—ensuring resilience in volatile environments. Its 4.0% dividend yield is backed by a 13-year dividend growth streak and a BBB+ credit rating.

Key Strengths:
- Tenant Quality: No tenant exceeds 8% of revenue, and 90% of rent was collected during the pandemic’s peak.
- Conservative Leverage: Debt-to-EBITDA remains below 6.0x, with 70% of leases tied to necessity-based industries.
- Acquisition Pipeline: A disciplined strategy to buy undervalued properties in high-demand locations drives steady growth.

Agree’s conservative approach and focus on necessity-based tenants make it a standout choice for income investors seeking safety without sacrificing growth.

3. STAG Industrial (STAG): Riding the Industrial Growth Wave

STAG Industrial’s 4.1% dividend yield and 13-year streak of annual increases position it as a leader in the industrial REIT space. Its portfolio of over 500 warehouses and distribution centers caters to e-commerce logistics, a sector experiencing exponential growth.

Key Strengths:
- E-Commerce Tailwinds: 30% of properties support e-commerce, and its geographic diversity (40 markets) limits cyclical risks.
- Resilient Occupancy: Maintained 95.6% occupancy as of Q4 2023, with leases averaging 7.5 years.
- Debt Reduction: A focus on lowering leverage (debt-to-EBITDA below 6.0x) strengthens its ability to weather economic shifts.

While STAG’s exposure to economy-sensitive sectors like automotive poses some risk, its strategic focus on logistics hubs and a BBB credit rating make it a compelling high-yield option for investors willing to accept moderate risk.

Conclusion: Balancing Income and Growth

These three REITs offer a balanced approach to income and growth:
1. Realty Income (O): The safest bet for steady income, with its 5.6% yield and 56-year dividend history.
2. Agree Realty (ADC): A conservative growth vehicle in essential retail, yielding 4.0% with minimal risk.
3. STAG Industrial (STAG): A higher-yielding play on industrial demand, though with cyclical exposure.

Investors should note:
- Realty Income’s modest FFO growth (0.7%–2.2% in 2025) reflects its mature scale, but its fortress balance sheet ensures dividend safety.
- Agree Realty’s 8.4% AFFO growth in Q1 2025 underscores its ability to capitalize on necessity-based demand.
- STAG Industrial’s 4.2% same-property NOI growth in 2023 highlights its industrial sector dominance.

For a well-rounded portfolio, pairing Realty Income’s stability with Agree’s conservative growth and STAG’s yield creates a blend of safety and upside. As e-commerce, urbanization, and essential retail continue to drive demand, these REITs are positioned to deliver both reliable income and long-term appreciation.

In a market hungry for yield and growth, these three monthly dividend REITs are among the most compelling choices for 2025 and beyond.