Investing in dividend-paying stocks is one of the easiest ways to collect passive income. While most companies that pay dividends do so quarterly, several distribute that cash to their investors each month.
Healthpeak Properties (DOC 1.05%), Realty Income (O 0.38%), and Stag Industrial (STAG 1.94%) stand out among income stocks because they have high-yielding monthly dividends. Here’s what makes them great stocks to buy for passive income this June.
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A new member of the monthly dividend club
Healthpeak Properties is a real estate investment trust (REIT) that leases properties to businesses in the healthcare sector — its portfolio features outpatient medical buildings, labs, and senior housing communities. These properties provide it with stable and growing rental income, and because it’s a REIT, it must distribute at least 90% of its taxable income to shareholders via dividends every year. However, in Healthpeak’s case, that’s less than 70% of its funds from operations (FFO).
The healthcare REIT switched to a monthly dividend schedule in April. It currently pays investors $0.10167 per share each month ($1.22 per year). It will make its next payment on June 27 to those who own its shares by the end of the market close on June 16. At its current share price, Healthpeak Properties offers a yield of more than 7%. Put another way, every $100 invested in its stock would produce more than $7 of dividend income each year at that rate.
Healthpeak’s latest dividend rate is 2% higher than it was in 2024. The REIT should be able to continue growing its payouts in the future. It has an estimated $500 million to $1 billion of financial flexibility to make accretive new investments or to repurchase shares. The REIT’s success in allocating capital to grow its FFO per share should allow it to continue raising its monthly dividend payment.
“The Monthly Dividend Stock”
No company does monthly dividends quite like Realty Income. The diversified REIT, which owns a host of retail, industrial, gaming, and other properties, declared its 659th consecutive monthly dividend in May: It will pay out a distribution of $0.2685 per share in mid-June. Those who buy the stock this month will be eligible for the dividend payment after that, which it should dish out in mid-July. The company is so dedicated to the premise of paying its shareholders monthly that it calls itself “The Monthly Dividend Company.” At its current payout rate and share price, its yield approaches 6%.
Growing its dividend is a key aspect of Realty Income’s model. It has raised its payment 130 times since its public market listing in 1994, including for the past 110 quarters in a row.
Acquisitions are the key driver of Realty Income’s dividend growth. The REIT typically invests billions of dollars in expanding its portfolio each year. Management says it expects to invest around $4 billion this year. With a low payout ratio (75% of its adjusted FFO) and one of the strongest financial profiles in the REIT sector, it will have plenty of flexibility to continue growing its portfolio and its payouts.
A steadily rising income stream
Stag Industrial owns a diversified portfolio of income-producing industrial properties. The REIT pays about two-thirds of its cash flow in dividends. That enables it to retain over $100 million each year to invest in additional income-generating industrial properties.
The REIT will pay its next monthly dividend on July 15 to shareholders of record as of June 30. It currently pays $0.12167 per share each month. That gives it a more than 4% yield at its current share price.
Stag Industrial plans to invest $350 million to $650 million into new properties this year. It buys stabilized operating properties and those with value-add upside potential (acquiring vacant buildings that need tenants, or those with redevelopment or expansion possibilities). A steady stream of new portfolio additions should enable the REIT to continue increasing its dividend, which it has done every year since it went public in 2011.
Top-notch monthly dividend stocks
Healthpeak Properties, Realty Income, and Stag Industrial offer high-yielding monthly dividends that should grow further in the coming years. That makes them great dividend stocks to buy for those seeking to collect passive income each month.
Matt DiLallo has positions in Realty Income and Stag Industrial. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Healthpeak Properties and Stag Industrial. The Motley Fool has a disclosure policy.
