Dividend Stocks: Realty Income, EPR Properties, Gladstone Land Focus

Investors seeking steady passive income may find opportunities in Realty Income, EPR Properties, and Gladstone Land. These REITs are noted for their monthly dividends and potential for dividend growth, making them appealing options in the current market.

Date: 03-10-2024

AI Rating: 7

The report highlights three dividend-paying real estate investment trusts (REITs) ideal for investors pursuing consistent passive income: Realty Income, EPR Properties, and Gladstone Land.

Realty Income

Realty Income is known as "The Monthly Dividend Company" and boasts a remarkable history with 651 consecutive monthly dividend payments. The company has increased its dividend for 30 straight years, including the last 108 quarters and 127 times overall since becoming public in 1994. The current dividend yield is about 5%, significantly exceeding the S&P 500's sub-1.5% yield. Realty Income anticipates growing its adjusted funds from operations (FFO) per share by 4% to 5% annually, supported by rent growth and strategic acquisitions. This growth potential, coupled with a diversified property portfolio and a robust balance sheet, positions Realty Income favorably for future dividend increases.

EPR Properties

EPR Properties focuses on experiential real estate, with a current dividend yield exceeding 7%. The company plans to invest between $200 million and $300 million to expand its portfolio, having committed $180 million for upcoming projects. This strategic investment is intended to bolster rental income, allowing for continued dividend growth, building on its history of dividend increases post-pandemic.

Gladstone Land

Gladstone Land, specializing in farmland REITs, currently offers a dividend yield above 4% and has increased its dividend in 35 of the last 38 quarters, totaling a 55.7% increase during this time. It is assessing its permanent crop portfolio due to recent fluctuations in crop prices, which could affect its ability to maintain monthly dividends. The company plans to reinvest proceeds from any sales into more stable income-generating assets, ensuring sustainable dividend payments.

Conclusion

Overall, Realty Income, EPR Properties, and Gladstone Land present solid options for income-seeking investors, showing strong dividend histories and growth potential. These characteristics enhance their attractiveness for those interested in steady income that may increase over time.

Stocks: NYSE: O NYSE: EPR NASDAQ: LAND