Dividend Stocks

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Realty Income - >>> 2 Stocks That Cut You a Check Each Month


Motley Fool

By Eric Volkman

Jun 9, 2022


https://www.fool.com/investing/2022/06/09/2-stocks-that-cut-you-a-check-each-month/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


This pair of REITs will line your pockets every few weeks.
For the most part, dividend investing rewards the patient. That's because the standard dividend payment cycle is once per quarter, meaning a mere four times per year.

It is, of course, very nice to be paid more frequently. While there aren't a great many companies that distribute a payout each and every month, they do exist; you just have to know where to look. Here are two real estate investment trusts (REITs) that space out their dividend in terms of only weeks, not quarters: Realty Income (O -1.24%) and Apple Hospitality REIT (APLE -2.69%).

1. Realty Income

Most people, we can safely assume, don't spend much time thinking about companies that pay monthly dividends. But when those thoughts do arise, we can also safely bet that the first name that often comes to mind is Realty Income. The company, which concentrates on retail properties, has been doling out monthly dividends for decades now.

Retail is a good sector to be deeply involved in these days. The pandemic seems to finally, finally be abating (although we should remain cautious about this). As a result, people are conducting normal activities like shopping, going to the movies, and eating in restaurants.

This very much plays to the strength of Realty Income, whose foundational business strategy is to lease to tenants resistant to the retail apocalypse. That means places that offer retail experiences that can't be easily duplicated -- going to the cinema to see a first-run film, for example, or spending a leisurely night with your sweetheart at a cozy restaurant.

Realty Income tends to lease on long-term contracts, and its tenants are typically top operators in their industries. As a result, occupancy is consistently high.

As of the end of March, for example, its occupancy rate was 98.6%. Even in the thick of the pandemic, that figure didn't dip much below 98%, which says something about the durability of that portfolio. It's also telling that the REIT can maintain those numbers with nearly 11,300 properties on its asset list.

That latter number is sure to grow, as Realty Income is an opportunistic and ever-hungry acquirer of new properties. That, combined with the rent raises it usually mandates in its contracts, should keep the growth train running. It should also maintain the buoyancy of that monthly dividend, which at a shade under $0.25 per share currently yields a sprightly 4.4%.

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