How Much Would It Take to Earn $100 a Month From Ventas Stock in 2025?

In the world of dividend investing, the goal of generating consistent passive income often hinges on two critical factors: dividend yield and the sustainability of the underlying business. For income-focused investors, Ventas, Inc. (VTR) has long been a compelling name in the real estate investment trust (REIT) sector. As of July 2025, VTR offers a dividend yield of 2.92%, a payout that, while modest compared to some high-yield REITs, reflects a company with a track record of steady growth and disciplined capital management. But how much would it take to generate $100 a month in dividends from VTR? And is this REIT a reliable cornerstone for a passive-income portfolio?

The Math: Calculating Required Investment

To earn $100 per month in dividends, an investor needs an annual dividend income of $1,200. Given VTR's current annual dividend of $1.92 per share, the calculation is straightforward:

$$\text{Required Shares} = \frac{\$1,200}{\$1.92} = 625 \text{ shares}
$$

At VTR's current share price of $65.50, the total investment required would be:

$$625 \text{ shares} \times \$65.50 = \$40,937.50
$$

This calculation assumes no changes in the dividend or share price. However, VTR has a history of gradually increasing its dividend—1.67% annualized growth over the past 12 months—and a projected 2025 earnings per share (EPS) growth of 7.84%. If these trends continue, the required capital could shrink over time, or the investor could reinvest dividends to accelerate income growth.

VTR's Financial Health: A Closer Look

The feasibility of relying on VTR for passive income depends heavily on its financial stability. As of March 2025, VTR's Net Debt-to-Further Adjusted EBITDA ratio stands at 5.7x, down from 6.7x in early 2024. This improvement reflects strong performance in its senior housing operating portfolio (SHOP), which saw a 13.6% year-over-year increase in Same-Store Cash Net Operating Income (NOI). SHOP same-store average occupancy also rose by 290 basis points, driven by strategic collaborations with operators and data-driven asset management initiatives.

VTR's liquidity position is equally robust. The company expanded its unsecured credit facility to $3.5 billion in April 2025 and reported $2.9 billion in liquidity as of March 31, 2025. This financial flexibility allows VTR to fund growth while maintaining a payout ratio of 59%—a moderate level that suggests room for future dividend increases.

Senior Housing Sector Growth: A Tailwind for VTR

The senior housing sector is experiencing a multiyear growth tailwind, driven by an aging U.S. population and rising demand for long-term care facilities. VTR is capitalizing on this trend by increasing its 2025 senior housing investment volume to $1.5 billion, up from $1 billion. These investments, priced below replacement cost, are expected to generate attractive NOI yields and multiyear growth. The company's “Right Market, Right Asset, Right Operator” strategy ensures that new acquisitions align with its long-term value-creation goals.

VTR's guidance for 2025—reaffirmed in its first-quarter report—includes maintaining Attributable Net Income per share, Nareit FFO per share, and Normalized FFO per share within projected ranges. This confidence stems from its ability to balance growth with financial discipline, even as interest rates remain elevated.

Risks and Considerations

While VTR's fundamentals are strong, investors should be mindful of its 531.5% payout ratio, which indicates that the dividend consumes a large portion of earnings. This high payout could limit flexibility during earnings downturns or economic shocks. However, VTR's improved leverage metrics and robust liquidity mitigate this risk to some extent. Additionally, the REIT's focus on senior housing—a sector with inelastic demand—provides a degree of insulation from broader economic volatility.

Is VTR a Core Income Holding?

For investors seeking a core income-producing REIT, VTR offers a compelling mix of stability and growth potential. Its moderate yield, strong balance sheet, and alignment with a growing sector make it a suitable candidate for a passive-income portfolio. However, it should be held alongside other high-yield REITs and diversified assets to reduce concentration risk.

To further enhance returns, investors could consider dollar-cost averaging into VTR over time or pairing it with growth-oriented stocks that offer reinvestment opportunities. Given its projected 7.84% EPS growth and 1.79 dividend coverage ratio (earnings divided by dividends), VTR appears well-positioned to sustain its dividend and potentially increase it in the coming years.

Final Thoughts

Generating $100 a month from VTR requires an initial investment of approximately $40,937.50, a sum that, while substantial, is manageable for long-term investors with a focus on compounding. VTR's disciplined approach to debt management, its growth in the senior housing sector, and its history of dividend increases make it a reliable, if not high-yielding, income generator.

As the REIT navigates a maturing market and interest rate environment, its ability to maintain financial flexibility and execute on strategic investments will be key. For those willing to hold VTR for the long term, it could serve as a steady cornerstone in a passive-income-focused portfolio, delivering both income and capital appreciation over time.