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.

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 »

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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?

Before you buy stock in EPR Properties, consider this:

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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.

Key Points

• Federal Realty Investment Trust has increased its dividend for 57 straight years.

• EPR Properties expects to grow its monthly dividend at a 3% to 4% annual rate.

• Sun Communities recently hiked its payout by more than 10%.

• These 10 stocks could mint the next wave of millionaires ›

Investing money in high-yielding dividend stocks is a super-easy way to generate passive income. You just buy the stocks and watch the dividend income flow into your account.

For example, investing $22,000 across the following three dividend stocks could net you 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 sources: Google Finance and author's calculations.

These real estate investment trusts (REITs) all generate stable and growing rental income to support their high-yielding dividends. Here's a closer look at these high-quality, high-yielding dividend stocks.

Image source: Getty Images.

Federal Realty Investment Trust

Federal Realty Investment Trust is a REIT focused on owning high-quality retail properties. The company has always prioritized quality over quantity when investing in retail properties. It currently owns 103 properties across nine strategically selected metro markets, primarily major gateway cities. The REIT invests in the first-ring suburbs of these markets because those areas benefit from the best demographics, given their highly dense populations of high-income earners. Space in those properties tends to remain in high demand by retailers, keeping occupancy high and driving steady rent growth.

It routinely upgrades its portfolio by selling lower-quality properties and recycling that capital to acquire higher-quality locations. Federal Realty will also invest money to improve its existing locations, including adding residential and other properties to its retail centers to draw more traffic to its retail tenants.

The REIT's focused and high-quality real estate portfolio has produced durable and growing income. That has enabled Federal Realty Investment Trust to raise its payment for 57 straight years, the longest record in the REIT industry.

EPR Properties

EPR Properties is a REIT focused on owning experiential real estate, including movie theaters, eat-and-play venues, and attractions. It leases these properties to operating tenants, primarily under triple net (NNN) terms. NNN leases generate stable rental income because tenants cover all property operating costs, including routine maintenance, real estate taxes, and building insurance. That stable income enables EPR Properties to pay a monthly dividend.

The REIT generates meaningful excess free cash flow after paying its high-yielding dividend. It reinvests those funds to grow its portfolio. EPR Properties buys experiential real estate in sale-leaseback transactions and invests in build-to-suit development and redevelopment projects. At its current annual investment rate of $200 million to $300 million, EPR can grow its cash flow per share and dividend at a 3% to 4% annual rate.

Sun Communities

Sun Communities is a REIT that invests in manufactured home communities and RV resorts. Those properties produce pretty durable income. It's expensive to move a manufactured home, which keeps occupancy high. Lot tenants typically sell their home to a new tenant rather than moving the house. Meanwhile, demand for space in RV parks is strong and growing, with limited new supply.

The company's properties are so durable that Sun Communities has delivered more than 20 years of positive annual net operating income (NOI) growth. For comparison, multifamily REITs have experienced three periods of declining NOI during that timeframe, because of recessions. Sun has also grown its NOI faster than other REITs, with 5.3% compound annual growth since 2000, compared with 3.2% for the industry as a whole. In addition to steady income growth at its existing locations, the REIT routinely acquires new properties and invests in expanding and redeveloping its existing ones.

Sun Communities' stable and steadily rising income enables it to pay a resilient and growing dividend. It recently raised its dividend payment by 10.6%.

Great ways to generate passive income

Federal Realty Investment Trust, ERP Properties, and Sun Communities pay attractive and growing dividends. That makes them great options for investors seeking to generate passive income. They should provide investors with durable and growing dividend income for years to come.

Where to invest $1,000 right now

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Matt DiLallo has positions in EPR Properties and Sun Communities. The Motley Fool has positions in and recommends EPR Properties. The Motley Fool recommends Sun Communities. The Motley Fool has a disclosure policy.

Realty Income (NYSE: O) is known as The Monthly Dividend Stock. The real estate investment trust's (REIT) stated mission is "to invest in people and places to deliver dependable monthly dividends that increase over time." It has certainly done that throughout its history. It has declared 660 consecutive monthly dividends since its formation and raised its payment 131 times since its public market listing in 1994.

The REIT currently offers a 5.6%-yielding dividend, which is very attractive considering that the S&P 500's dividend yield is below 1.5%. However, it's not the only REIT paying an attractive monthly dividend. EPR Properties (NYSE: EPR) currently pays a monthly dividend yielding 6.2%. Here's why those who like Realty Income should check out this even higher-yielding monthly dividend stock.

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 »

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An entertaining portfolio

EPR Properties is a REIT focused on experiential real estate. It owns movie theaters, accounting for 38% of its annual earnings; eat-and-play properties, 24%; attractions and cultural properties, 13%; fitness and wellness locations, 8%; ski resorts, 7%; experiential lodging, 2%; and gaming properties, 2%. The REIT also owns a small educational property portfolio, consisting of early childhood education (4%) and private schools (2%), that it's steadily selling off to recycle capital into experimental properties.

Realty Income also invests in experiential real estate as part of its diversified portfolio. The REIT's portfolio currently has properties in gaming, making up 3.2% of its annual rent; health and fitness, 4.3%; theaters, 2.1%; and entertainment 1.8%.

EPR Properties leases these properties back to companies that operate the experiences under long-term, primarily triple net leases (NNN). That's the same lease structure utilized by Realty Income. These leases provide the REITs with relatively stable and steadily rising rental income.

A strong financial profile

EPR Properties expects its portfolio to produce between $5.00 and $5.16 per share of funds from operations (FFO) as adjusted this year. With its current dividend rate at $0.295 per share each quarter, or $3.54 annually, the REIT has a conservative dividend payout ratio of around 70%. That enables it to retain cash to fund new investments. EPR has a lower dividend payout ratio than Realty Income, which was around 75% of its adjusted FFO in the first quarter.

EPR Properties also has an investment grade-rated balance sheet with lots of liquidity. While the company has a good balance sheet, it's not as strong as Realty Income's, which rates as one of the 10 best in the REIT sector. Higher interest rates in recent years have therefore made it more challenging for EPR to obtain outside capital to fund new investments. That has led it to sell off educational and theater properties to recycle that capital into new experiential property investments.

Solid growth prospects

EPR Properties estimates that the total addressable market opportunity for experiential real estate is well over $100 billion. Given the current size of its portfolio, with $6.4 billion of experiential properties, it has a massive growth runway.

The REIT is investing conservatively these days due to higher interest rates by funding new investments internally via post-dividend free cash flow, the proceeds from capital recycling, and new debt within its current leverage level. That works out to $200 million to $300 million of new investments per year. At that rate, the REIT can grow its adjusted FFO per share by around 3% to 4% annually. That should support a similar dividend growth rate; it raised its payout by 3.5% earlier this year. The company invested a total of $33.7 million in the first quarter, including $14.3 million to acquire an attraction property. Meanwhile, it has lined up $148 million of spending on experiential development and redevelopment projects it expects to fund over the next two years.

Realty Income also expects to grow its adjusted FFO per share at a low-to-mid single-digit rate. That should support continued growth in its dividend. However, given its greater diversification, it has a much bigger opportunity set, at $14 trillion.

A great monthly dividend stock

Realty Income is one of the best monthly dividend stocks to buy for passive income. However, it's not the only option out there. EPR Properties currently offers a higher-yielding payout backed by a solid financial profile. It's a good option for those seeking more passive dividend income each month than Realty Income currently provides.

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

Before you buy stock in EPR Properties, 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 EPR Properties 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 $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $875,479!*

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See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

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 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).

Image source: Getty Images.

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!*

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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.

Investing money in high-yielding dividend stocks can be a great way to generate passive income. Their higher yields enable investors to earn more money from every dollar they invest.

EPR Properties (NYSE: EPR) is a great option for those seeking a lucrative passive income stream. The real estate investment trust (REIT) currently has a dividend yield approaching 7%. It could turn a $5,000 investment into nearly $350 of annual passive income at that rate. Even better, the REIT pays a monthly dividend, making it appealing for those seeking regular passive income to help cover their recurring expenses. Here's a closer look at this high-yielding REIT.

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 »

Image source: Getty Images.

Cashing in on a niche

EPR Properties specializes in investing in experiential real estate. It owns movie theaters, eat-and-play venues, fitness and wellness properties, attractions, and other similar properties. It leases these properties to tenants that will operate the experiences. It also has a small portfolio of educational properties (early education centers and private schools). Most of its leases are triple net (NNN), which provides very stable rental income because the tenant covers all operating costs, including routine maintenance, real estate taxes, and building insurance.

The REIT pays out a conservative percentage of its predictable rental income in dividends. In 2025, the company expects to generate between $5 and $5.16 per share of funds from operations (FFO) as adjusted, a 4.3% increase from last year at the midpoint. EPR Properties currently pays a monthly dividend of $0.295 per share ($3.54 annually). That gives it a dividend payout ratio of around 70%.

That conservative payout ratio gives the REIT a nice cushion while enabling it to retain meaningful excess free cash flow to fund new experiential property investments. EPR Properties also has a solid investment-grade balance sheet with lots of liquidity. It ended the first quarter with $20.6 million in cash and only $105 million outstanding on its $1 billion credit facility.

EPR Properties' combination of stable cash flow, conservative payout ratio, and rock-solid balance sheet puts its high-yielding dividend on a very firm foundation.

Slow and steady growth

The REIT steadily invests money to enhance and expand its portfolio. It aims to spend between $200 million and $300 million this year. The company invested $37.7 million during the first quarter, including buying an attraction property in New Jersey for $14.3 million (Diggerland USA, the only construction-themed attraction and water park in the country). The rest of its investments were on build-to-suit development and redevelopment projects, including some Andretti Indoor Karting eat-and-play venues that will open over the next year.

EPR Properties also continued to secure new build-to-suit projects. It bought land for $1.2 million and provided $5.9 million of mortgage financing for a private club in Georgia, its first traditional golf investment. It also closed on the land for a new Pinstack Eat & Play property in Virginia (paying $1.6 million) and expects to spend $19 million on construction. EPR has now secured $148 million of experiential development and redevelopment projects it intends to fund over the next two years.

The company is funding these investments with post-dividend free cash flow, available liquidity, and capital recycling. The REIT has been strategically reducing its exposure to the theater and educational sectors by selling properties. It sold three theaters and 11 early childhood properties in the first quarter for $70.8 million ($9.4 million gain). It also received $8.1 million to fully repay two mortgages secured by early childhood properties. The company anticipates selling $80 million to $120 million of properties this year, giving it cash to recycle into its targeted experiential sectors.

The company's current investment rate has it on track to grow its FFO per share at around a 3% to 4% annual rate. That should support a similar dividend growth rate (it raised its payment by 3.5% earlier this year). If interest rates fall, the company could ramp up its investment rate and grow even faster in the future.

A high-quality passive income stock

EPR Properties' portfolio of experiential properties produces very stable rental income. That provides the REIT with cash to pay its lucrative monthly dividend and invest in expanding its portfolio. Those growth investments should enable the company to steadily increase its payout. That stable and growing dividend makes EPR Properties a great option for those seeking a recurring passive income stream.

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

Before you buy stock in EPR Properties, 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 EPR Properties 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 $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $714,958!*

Now, it’s worth noting Stock Advisor’s total average return is 907% — a market-crushing outperformance compared to 163% 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 5, 2025

Matt DiLallo has positions in EPR Properties. The Motley Fool recommends EPR Properties. The Motley Fool has a disclosure policy.