Monthly-Paying Dividend REITs: The Power of Passive Income in 2026

For income-focused investors, real estate investment trusts (REITs) remain a cornerstone of diversified portfolios, particularly those offering monthly dividends. In 2026, as interest rates stabilize and economic uncertainty lingers, REITs with strong tenant profiles, disciplined capital strategies, and a history of dividend resilience stand out. Three names-Realty Income (O), CT REIT (CRT.UN), and Agree Realty (ADC)-emerge as compelling options for generating consistent passive income.

Realty Income (O): The Dividend King's Endurance

Realty Income, often dubbed the "Monthly Dividend Company," has raised its payout for 133 consecutive quarters, a streak unmatched in the REIT sector. As of December 2025, it offers a 5.68% yield, with an annualized dividend of $3.24 per share. This reliability stems from its 15,542-property portfolio, spanning the U.S., U.K., and Europe, and its focus on non-discretionary retail and service tenants. These tenants, such as Dollar General and McDonald's, generate stable cash flows regardless of economic cycles.

The company's financial discipline is equally impressive. Moody's and S&P have assigned Realty Income A3/A– credit ratings, reflecting its investment-grade balance sheet. In 2025, Realty Income allocated $6 billion in capital, leveraging its disciplined approach to expand its net lease model while maintaining a conservative leverage profile. Analysts note that its 91% retail base rent from essential services insulates it from consumer spending volatility.

Agree Realty (ADC): Growth with Guardrails

Agree Realty, a leader in industrial and retail net leases, has also demonstrated dividend resilience. Its October 2025 payout of 26.2 cents per share marked a 2.3% increase, extending its 165-month unbroken dividend streak. With a 4.34% yield, ADC may lag behind O in immediate income, but its 75% AFFO payout ratio ensures long-term sustainability.

The REIT's tenant portfolio includes household names like Amazon and Walmart, which anchor its 1,300+ properties. In 2025, ADC raised its investment guidance to $1.4 billion–$1.6 billion, driven by strong external growth platforms and a BBB+ credit rating from S&P. This upgraded rating, coupled with a 99.8% occupancy rate, underscores its ability to weather interest rate fluctuations. For investors seeking growth alongside income, ADC's balance of expansion and prudence is hard to ignore.

CT REIT (CRT.UN): Canadian Stability with a High-Yield Edge

For North American investors, CT REIT offers a compelling case study in tenant concentration and operational efficiency. With a 5.74% yield, CRT.UN outperforms the retail REIT average, supported by a 99.4% occupancy rate as of Q3 2025. Its portfolio is dominated by Canadian Tire Corporation (CTC), which accounts for 93% of gross leasable area and 91.9% of base minimum rent. While this concentration poses risk, CTC's investment-grade status and long-term lease agreements mitigate it, ensuring predictable cash flows.

CT REIT's financials further bolster its appeal. Its indebtedness ratio of 39.8% and $90 million in new investments with a 6.45% yield highlight its conservative balance sheet and growth potential. Morningstar DBRS recently assigned its Series J Debentures a BBB rating, signaling confidence in its creditworthiness. Despite a modest 2.8% projected dividend growth for 2026 (below the five-year average), CRT.UN's focus on core income and operational efficiency positions it to outperform peers.

Interest Rate Resilience and Long-Term Outlook

All three REITs exhibit traits that enhance their resilience in a high-rate environment. Realty Income's global diversification and non-discretionary tenants, Agree Realty's industrial exposure and AFFO discipline, and CT REIT's long-term leases with high-credit tenants create a buffer against rising borrowing costs. For instance, O's $6 billion capital deployment in 2025 and ADC's $1.4–$1.6 billion guidance reflect proactive strategies to lock in long-term yields.

Moreover, their payout ratios-O's 85% AFFO coverage and ADC's 75%-suggest room for future increases without overleveraging. CT REIT's 2.9% AFFO-per-unit growth in Q3 2025 further illustrates its ability to adapt. In a landscape where REITs broadly anticipate slower dividend growth, these three stand out for their ability to balance income with stability.

Conclusion

Monthly-paying REITs like Realty Income, Agree Realty, and CT REIT offer a rare combination of yield, reliability, and growth potential. While each has unique strengths-O's global reach, ADC's industrial focus, and CRT.UN's Canadian retail dominance-they share a common thread: disciplined capital allocation and tenant quality. For investors prioritizing passive income in 2026, these REITs provide a robust foundation, even as macroeconomic headwinds persist.