If you are looking to gain reliable income from your investments, dividend-paying stocks are good options to explore. Typically, companies paying dividends make these payments quarterly. Those looking for more frequent dividends payouts can choose stocks that pay monthly.
A real estate investment trust (REIT) is often a good place to start your search when looking for dividend-paying stocks since its tax structure requires that the company payout at least 90% of its taxable income to its shareholders.
Let’s take a closer look at two REITs that are good choices for those investors seeking reliable and frequent dividend payments.
1. Realty Income
Realty Income (NYSE:O) refers to itself as “The Monthly Dividend Company.” That apt description makes it a perfect choice for those wishing to receive payments in short intervals. Founded more than 50 years ago, Realty Income has raised dividends annually for more than 25 straight years, making it a Dividend Aristocrat.
It rents nearly all of its 6,600 properties to retailers, an industry besieged by consumers shifting their shopping habits to the internet, which the pandemic accelerated. However, it offsets these risks by leasing to large, established, financially stable companies, such as Walgreens Boots Alliance, Dollar General, and Walmart.
Last year’s results — despite the pandemic bringing challenges to its movie theater and fitness club tenants (5.6% and 6.8% of its rental properties, respectively) — bore out Realty Income’s approach. This includes collecting nearly 94% of the rent due in the fourth quarter and ending the year with about a 98% occupancy rate.
Realty Income raised the monthly per-share dividend from $0.234 to $0.2345 starting in January and often hikes payments more than once a year. It has a 4.4% dividend yield.
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