When the June consumer price index came in at a stunning 9.1% year-over-year rate in July, most consumers likely would argue that the inflation rate sure seems much higher than that. We know that gasoline is up much more than that since this time last year, as are prices at the grocery store. In a rampant inflationary time like we are in now, it makes sense to buy hard assets, and real estate is one of the best.
[in-text-ad]
Real estate investment trusts (REITs) are a practical way to own commercial and residential real estate holdings, and many pay among the best dividends of any asset class. However most only pay quarterly, or four times a year, so there are at least 90 days between dividends.

Since most Americans receive bills that need to be paid monthly, we decided to screen our 24/7 REIT research universe for Buy-rated companies that pay monthly dividends. We found six that make sense for income investors looking for dependable distributions and a degree of safety.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Broadmark Realty

While similar to a mortgage REIT, this top company is an investor in what is known as deed of trust loans. Broadmark Realty Capital Inc. (NYSE: BRMK) engages in the underwriting, funding, servicing and managing a portfolio of short-term and first deed of trust loans to fund the construction, development, and investment in residential or commercial properties in the United States.

The company also provides short-term and first deed of trust loans secured by real estate to fund the construction, development and investment in residential or commercial properties. The company has elected to be taxed as a real estate investment trust. As a result, it is not subject to corporate income tax on that portion of its net income that is distributed to shareholders.

Investors receive an 11.29% distribution. Raymond James has an $11 target price on Broadmark Realty Capital stock. The consensus target is just $8.17, and Wednesday’s final trade was reported at $7.44.

EPR Properties

This REIT invests in some of the most popular entertainment companies. EPR Properties Inc. (NYSE: EPR) is a leading experiential net lease REIT, specializing in select enduring experiential properties in the real estate industry.
The company is focused on real estate venues that create value by facilitating out-of-home leisure and recreation experiences in which consumers choose to spend their discretionary time and money. It has nearly $6.7 billion in total investments across 44 states. EPR Properties adheres to rigorous underwriting and investing criteria centered on key industry-, property- and tenant-level cash flow standards, and it believes a very focused approach provides a competitive advantage and the potential for stable and attractive returns.
[in-text-ad]
EPR Properties posted strong results this week, with funds from operations (FFO) that exceeded Wall Street estimates and were up big from last year’s print. The company has eclipsed FFO estimates for the past four quarters.

Shareholders receive a 6.13% distribution. The $64 Raymond James target price is a Wall Street high. The consensus target on EPR Properties stock is $56.57, and the shares closed on Wednesday at $52.68.

Gladstone Commercial

This stock was hit hard as interest rates charged higher and is offering the best entry point in over a year. Gladstone Commercial Corp. (NASDAQ: GOOD) is focused on acquiring, owning and operating net leased industrial and office properties across the United States.

As of June 30, 2021, Gladstone owns a diversified portfolio of 121 office and industrial properties located in 27 states and leased to 106 tenants. The company has grown the portfolio in a consistent, disciplined manner at a rate of 18% per year since the IPO in 2003. It matches long-term leased properties with long-term debt to lock in the spread to create a durable, stable cash flow stream to fund monthly distributions to shareholders. Current occupancy stands at 96.5% and occupancy has never dipped below 95.0% since the IPO.

Most importantly for investors, Gladstone has a track record of success, as exhibited by a history of strong distribution yields, consistent occupancy greater than 95.0%, and 10+ years of paying continuous monthly cash distributions.

Gladstone Commercial stock comes with a 7.46% distribution. The B. Riley Securities target price is $23, while the consensus target is $23.60. The last trade for Wednesday was reported at $20.18.

LTC Properties

This REIT is focused on a sector that is growing fast as the U.S. population ages. LTC Properties Inc. (NYSE: LTC) invests in seniors housing and health care properties, primarily through sale-leasebacks, mortgage financing, joint-ventures and structured finance solutions, including preferred equity and mezzanine lending.
The company holds 181 investments in 27 states with 29 operating partners. The portfolio comprises approximately 50% seniors housing and 50% skilled nursing properties. Moreover, LTC Properties posted outstanding second-quarter results in which funds from operations and revenues both exceeded Wall Street expectations.
[in-text-ad]
Investors receive a 5.41% distribution. Berenberg Bank upgraded the shares to Buy just this week, and it hiked the $34 target price to $47. The consensus target is $40. The final LTC Properties stock trade for Wednesday was for $42.12 a share.

Realty Income

This is an ideal stock for growth and income investors looking for a safer, inflation-busting idea for 2022. Realty Income Corp. (NYSE: O) is an S&P 500 company dedicated to providing stockholders with dependable monthly income.

The company is structured as a REIT, and its monthly distributions are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants. To date, the company has declared 608 consecutive common stock monthly dividends throughout its 54-year operating history and increased the dividend 109 times since its public listing in 1994. It is a top real estate member of the S&P 500 Dividend Aristocrats index.

Realty Income stock investors receive a 4.16% distribution monthly. Goldman Sachs analysts have set a $86 price target. That is well above the $75.44 consensus target and the $72.00 close on Wednesday.

Stag Industrial

This strong industrial REIT play offers solid upside potential. Stag Industrial Inc. (NYSE: STAG) is a self-managed full-service real estate company primarily focused on the acquisition, ownership and management of single-tenant, Class B warehouses in secondary markets across the United States. The company continues to focus on expansion of its acquisition platform to find acquisitions to grow the portfolio.

Top Wall Street analysts expect management to be aggressive acquirers over time. Additionally, the in-place portfolio should deliver stable organic growth supported by healthy property-level fundamentals.

Investors receive a 4.42% distribution. The STAG Industrial target price at Raymond James is $47. The consensus target is lower at $39.88, and the closing price on Wednesday was $33.00 a share.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

Shares of all these top companies are way off the highs printed earlier this year, and all six have paid dependable dividends for years. While there are also mortgage REITs that pay monthly dividends, they are more vulnerable to a shake-out in a rising-rate environment, and we wanted to focus on the companies that had hard assets.

It is important to remember that REIT distributions may contain return of principal in their monthly distribution payments.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.