Matt DiLallo, The Motley Fool

Sun, May 25, 2025, 12:20 PM4 min read

• Stag Industrial has raised its dividend every year since it went public in 2011.

• EPR Properties expects to grow its high-yielding monthly dividend by 3% to 4% per year.

• Healthpeak Properties has lots of dry powder to continue growing its portfolio and shareholder payout.

• 10 stocks we like better than EPR Properties ›

Buying dividend stocks can be a great way to produce some extra income to help cover your living expenses. However, some investors face a problem. Most companies pay quarterly dividends, which don't align with monthly costs.

Stag Industrial (NYSE: STAG), EPR Properties (NYSE: EPR), and Healthpeak Properties (NYSE: DOC) stand out because they pay monthly dividends. The real estate investment trusts (REITs) also have higher dividend yields. These features make them ideal stocks to buy for passive income.

Stag Industrial currently has a 4.3% dividend yield, more than three times the S&P 500's dividend yield (1.3%). Every $100 invested in its stock would produce $4.30 in annual dividend income at that rate.

The REIT owns a diversified portfolio of industrial real estate (warehouses and light manufacturing facilities) secured by long-term leases that escalate rents at a low-single-digit annual rate. It pays out about 67% of its cash flow in dividends, enabling it to retain over $100 million each year to fund new income-generating industrial property investments.

The company also has a conservative balance sheet, giving it additional financial flexibility to invest in expanding its portfolio. It targets value-add opportunities that generate higher returns, such as leveraging its expertise to lease up a vacant property and completing expansion and redevelopment projects at an acquired location.

Stag Industrial's growth drivers have enabled it to steadily increase its monthly dividend. The REIT has raised its payout every year since it went public in 2011.

EPR Properties' monthly dividend currently yields 6.8%. This REIT focuses on owning experiential real estate, such as movie theaters, eat-and-play venues, health and fitness properties, and attractions. It leases these properties to companies that operate the experiences.

The REIT pays out about 70% of its stable rental revenue in dividends, enabling it to retain cash to fund new investments. It has the financial flexibility to invest about $200 million to $300 million annually. This investment rate supports about 3% to 4% annual growth in the company's funds from operations (FFO) as adjusted. That should support a similar dividend growth rate (EPR hiked its payout by 3.5% earlier this year).