Key Points

• EPR Properties has a 6% dividend yield.

• Realty Income has increased its monthly dividend 131 times since coming public in 1994.

• Healthpeak Properties pays a very healthy monthly dividend.

• 10 stocks we like better than EPR Properties ›

Investing in real estate investment trusts (REITs) can be a very effective way to generate consistent dividend income. These companies typically produce dependable rental income that supports attractive dividend payments. Most REITs also reinvest capital to expand their portfolios, supporting rental income and dividend growth.

EPR Properties (NYSE: EPR), Realty Income (NYSE: O), and Healthpeak Properties (NYSE: DOC) currently rank among the most compelling REITs to buy for dividend income right now. They offer high-yielding monthly dividends, making them ideal choices for investors seeking reliable passive income.

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An attractive income stream

EPR Properties focuses on experiential real estate such as movie theaters, eat-and-play venues, and attractions. It leases these properties to operators under long-term, net leases that require tenants to cover all operating costs, including routine maintenance, real estate taxes, and building insurance. This structure provides EPR with stable rental income.

The REIT expects to generate between $5.00 and $5.16 per share of funds from operations (FFO) as adjusted this year. That's plenty of cash flow to cover its monthly dividend payments ($0.295 per share each month and $3.54 annually). At that payment rate, the landlord has a dividend yield of more than 6%, turning a $2,000 investment into $120 of annual dividend income (or $10 per month).

EPR Properties reinvests its excess cash after paying dividends into additional experiential properties. The REIT spent $37.7 million in the first quarter, including buying an attraction property for $14.3 million. It has lined up another $148 million of experiential development and redevelopment projects it expects to fund over the next two years. These investments should grow the REIT's FFO per share by 3%-4% annually, supporting dividend growth within that range.

An extremely durable dividend stock

Realty Income owns a diversified portfolio (retail, industrial, gaming, and other properties), net leased to many of the world's leading companies. Its high-quality portfolio generates durable rental income to support its monthly dividend. Its portfolio has been so resilient that the REIT has only had one year when it didn't grow its adjusted FFO per share (2009).

The REIT's durable rental income has provided it with a rock-solid foundation to pay dividends. Realty Income has declared 661 consecutive monthly dividends throughout its history. Better yet, it has raised its payment 131 times since its public market listing in 1994, including 111 straight quarters. That payout currently yields more than 5.5%.

Realty Income is in an excellent position to continue increasing its dividend. It generates substantial free cash flow after paying dividends and maintains one of the industry's strongest balance sheets. Meanwhile, it has a massive market opportunity, with over $14 trillion of real estate in its core markets suitable for net leases.

A very healthy income stock

Healthpeak Properties holds a diversified portfolio of healthcare real estate. Its outpatient medical, lab, and senior housing assets benefit from steady and rising demand, producing consistent and growing rental income. This stable income supports the landlord's monthly dividend, which yields nearly 6.5%.

Healthpeak's existing portfolio should grow its rental income by around 3% per year due to contractual rental escalation clauses. Additionally, the company expects to capture bigger rent bumps as existing long-term leases expire and it signs new leases at higher market rents.

Meanwhile, Healthpeak's strong balance sheet and substantial excess cash flow after paying dividends provide ample flexibility to pursue new investments, including acquisitions, development projects, and mortgage loans secured by healthcare real estate. The REIT's growth drivers should increase its income, supporting further dividend growth.

Smart REITs to buy for passive dividend income

EPR Properties, Realty Income, and Healthpeak Properties generate reliable rental income to support their high-yielding monthly dividends. They also have strong financial positions that enable continued investments in new income-generating properties, fueling further income and dividend growth. These qualities make them top REITs to buy for investors seeking to turn $2,000 into dependable passive income.

Should you invest $1,000 in EPR Properties right now?

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Matt DiLallo has positions in EPR Properties and Realty Income. The Motley Fool has positions in and recommends EPR Properties and Realty Income. The Motley Fool recommends Healthpeak Properties. The Motley Fool has a disclosure policy.

There are many ways to make some passive income. Investing in real estate and high-yielding dividend stocks are two tried-and-true methods. You can combine those options to collect some lucrative dividend income by investing in real estate investment trusts (REITs) with high dividend yields.

For example, investing $11,250 across the following four high-yielding REITs can generate over $1,000 of dividend income each year:

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Data source: Google Finance and the author's calculations.

These REITs also pay their dividends monthly, making them ideal for those seeking to collect regular passive income to help cover their recurring expenses.

AGNC Investment

AGNC Investment is a mortgage REIT focused on investing in residential mortgage-backed securities (MBS) guaranteed against credit losses by government agencies like Fannie Mae. That makes these mortgage pools very low-risk investments. They're also relatively low-returning investments (low-to-mid single-digit yields).

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AGNC uses leverage to earn higher returns. This investment strategy can be very lucrative. CEO Peter Federico commented on the REIT's first-quarter conference call, "A portfolio of swaps levered the way we lever them would generate a return in the low 20%." That's a high-enough return to cover the REIT's current dividend and operating expenses, which is why it remains comfortable with its high yield.

AGNC has a higher risk profile than other REITs because a sudden shift in market conditions could impact its returns and ability to maintain its dividend, which investors need to monitor.

Realty Income

Realty Income has been one of the most reliable dividend stocks over the years. It recently declared its 659th consecutive monthly dividend. The REIT has increased its payment for 110 straight quarters and all 30 years that it has been a public company, growing it at a 4.3% compound annual rate. It has also delivered positive earnings growth in 29 of those 30 years.

A big factor driving its consistency is its portfolio. Realty Income owns a diversified portfolio of net lease properties (retail, industrial, gaming, and others). Net leases provide it with very stable rental income because they require tenants to cover all property operating expenses, including routine maintenance, real estate taxes, and building insurance.

Realty Income also has a top-tier financial profile, which enables it to steadily invest in additional income-generating properties. That steady stream of new properties empowers the REIT to routinely increase its high-yielding monthly dividend.

Healthpeak Properties

Healthpeak Properties is a healthcare REIT. It owns outpatient medical, lab, and senior housing properties. The company's diversified portfolio works together as a cohesive unit focused on healthcare discovery and delivery. Its properties will benefit from the aging of the U.S. population and the desire for better health.

Those catalysts drive stable and growing demand for space in its portfolio of high-quality healthcare properties, supporting rising rental income for the REIT. Healthpeak also has a healthy financial profile, which allows it to invest in new properties to expand its portfolio (it currently has $500 million to $1 billion of dry powder to make new investments). These drivers should enable Healthpeak to increase its high-yielding payout in the future (it recently started growing its dividend, providing investors with a 2% raise).

EPR Properties

EPR Properties specializes in investing in experiential real estate. It owns movie theaters, eat-and-play venues, fitness and wellness properties, and other attractions. The company also has a small educational property portfolio. These properties provide it with steady rental income, backed primarily by net leases.

The REIT currently has the financial capacity to invest $200 million to $300 million into new properties each year. EPR Properties has already lined up $148 million of experiential development and redevelopment projects it expects to fund over the next two years, including financing the construction of a private golf club in Georgia, its first traditional golf investment. That investment rate should drive 3% to 4% annual growth in its cash flow per share, which should support a similar dividend growth rate (it raised its payout by 3.5% earlier this year).

Big-time passive income stocks

REITs are often great investments for those seeking to generate passive income. Many have high dividend yields, which enable you to produce more income from every dollar you invest. Meanwhile, AGNC Investment, Realty Income, EPR Properties, and Healthpeak Properties all pay monthly dividends, which is ideal since they better align your income with your expenses. Most of those REITs should also steadily increase their payouts, which should enable you to collect even more passive income in the future.

Should you invest $1,000 in AGNC Investment Corp. right now?

Before you buy stock in AGNC Investment Corp., consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AGNC Investment Corp. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $826,385!*

Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 12, 2025

Matt DiLallo has positions in EPR Properties and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends EPR Properties and Healthpeak Properties. The Motley Fool has a disclosure policy.