Monthly Dividend Payers: Balancing Yield, Stability, and Growth in Retirement Portfolios

For retirees seeking predictable income, monthly dividend-paying stocks have long been a cornerstone strategy. Among these, real estate investment trusts (REITs) stand out for their combination of yield, growth potential, and diversification benefits. Three names-Realty Income (O), Agree Realty (AR), and EPR Properties (EPR)-have emerged as leading contenders in the net lease REIT space, offering varying trade-offs between yield, financial stability, and growth. As investors navigate a low-yield environment, understanding these dynamics is critical to constructing a resilient retirement portfolio.

The Allure of Monthly Dividends

Monthly dividend payers provide retirees with a steady cash flow, mimicking the regularity of a paycheck. REITs, by law, must distribute at least 90% of their taxable income to shareholders, making them natural candidates for income-focused strategies. However, not all REITs are created equal. A high yield may signal financial strain, while a lower yield with strong fundamentals can offer greater long-term security.

Realty Income, often dubbed the "Monthly Dividend Company," exemplifies this balance. As of December 9, 2025, it raised its monthly payout to 27.00 cents per share, translating to an annualized dividend of $3.24 and a yield of 5.68%. This increase reflects its disciplined approach to capital preservation and tenant quality, with a payout ratio of 76% of adjusted funds from operations (FFO). Such a ratio suggests ample room for future growth without overleveraging.

Agree Realty, another stalwart in the net lease sector, maintains a similarly conservative payout ratio of 75%, while delivering a 10-year dividend compound annual growth rate (CAGR) of 6%. Its focus on single-tenant retail properties with long-term leases provides stability, though its yield (currently around 4.8%) lags behind peers like EPR Properties.

EPR Properties: High Yield, High Stakes

EPR Properties offers a more aggressive profile. With a current yield of 6.99%, it is the highest among the three, driven by a 3.5% annualized dividend increase to $0.295 per share in 2025. However, this comes at a cost: EPR's payout ratio of 151.9% of adjusted FFO is notably above the REIT sector average, raising concerns about sustainability.

Recent financial results, however, temper these worries. For Q3 2025, EPR reported a 1.0% year-over-year revenue increase to $182.3 million, with net income surging 49.1% to $60.55 million. The company also raised its 2025 FFOAA guidance to $5.05–$5.13 per share, reflecting confidence in its ability to cover dividends. EPR's capital recycling efforts- selling $19.3 million in non-core assets-further bolster liquidity, with $379.0 million remaining on its $1.0 billion credit facility.

Strategic Considerations for Retirees

The choice between these REITs hinges on individual risk tolerance and income needs. Realty Income and Agree Realty prioritize stability, with payout ratios below 80% and diversified tenant bases. For retirees prioritizing yield, EPR Properties offers a compelling but riskier proposition. Its high payout ratio could become problematic if rental income growth slows or interest rates rise, but its recent earnings growth and asset sales suggest management is proactive in managing these risks.

A balanced approach might involve pairing EPR's high yield with the lower-volatility profiles of Realty Income and Agree Realty. This diversification mitigates the risk of a single REIT underperforming while maintaining an overall yield above 5%. Additionally, retirees should monitor REITs' leverage and debt maturities- EPR's lack of scheduled debt repayments until 2026 is a positive sign.

Conclusion

Monthly dividend REITs like Realty Income, Agree Realty, and EPR Properties offer retirees a spectrum of options to balance yield, stability, and growth. While EPR's high yield is tempting, its elevated payout ratio demands closer scrutiny. Conversely, Realty Income and Agree Realty provide more conservative, sustainable growth paths. For investors seeking a hybrid strategy, a diversified portfolio of these REITs can generate reliable income while hedging against sector-specific risks. In an era of economic uncertainty, such strategic nuance is essential to preserving capital and ensuring lifelong income.