M
onthly dividend income can be built through REITs, giving investors a diversified real‑estate exposure without the hassle of property management. By allocating $50,000 across three top‑paying REITs—Realty Income, Healthpeak Properties, and EPR Properties—you could earn roughly $247 per month, based on a 5.93% annual yield. Each REIT brings distinct strengths:
**Realty Income**
- Mission: steady, rising monthly dividends.
- Track record: 132 dividend hikes since 1994, 112 consecutive quarterly increases, and a 4.2% compound annual growth rate.
- Portfolio: retail, industrial, gaming, and other assets secured by long‑term net leases with major tenants.
- Payout: 75% of rental income goes to shareholders; the rest fuels further acquisitions.
**Healthpeak Properties**
- New monthly dividend payer (shifted from quarterly earlier this year).
- Assets: medical office buildings, laboratories, senior housing leased to healthcare systems, biopharma, and physician groups under long‑term leases with annual escalation clauses.
- Payout ratio: 75%, improving as rental income rises.
- Growth: 3% annual income escalation from lease clauses and a 2% dividend increase this year, with plans to expand the portfolio.
**EPR Properties**
- Focus: experiential real estate—movie theaters, eat‑and‑play venues, wellness centers, attractions.
- Leases: long‑term net leases to operating companies.
- Payout: 70% of cash flow to dividends; the remainder reinvested.
- Investment plan: $200–$300 million annually, with $109 million earmarked for projects over the next 18 months.
- Growth: projected 4.3% cash‑flow‑per‑share increase this year and a 3.5% rise in monthly dividends.
**Getting Started**
REITs are highly accessible; you can begin with a modest monthly contribution and gradually build a passive‑income portfolio. Even if you don’t have $50,000 now, incremental investing will eventually yield a steady dividend stream.
**Why These REITs?**
Their diversified real‑estate holdings, proven dividend‑growth histories, and solid payout ratios make them compelling choices for anyone seeking reliable, increasing passive income. Adding Realty Income, Healthpeak Properties, and EPR Properties to your portfolio is a practical first step toward securing a more stable financial future.
