REITs are attractive for income-focused investors, especially retirees, due to required high payouts and current undervaluation from elevated interest rates. Interest rates heavily influence REIT performance; while rates remain high, this is an opportunity to accumulate quality REITs for long-term gains. I highlight Agree Realty, NNN REIT, and Alexandria Real Estate Equities as fundamentally sound picks with double-digit upside potential over the next 1–2 years.
Building a portfolio of dividend machines is a great way to fund a retirement. I share two types of stocks that I would bet my retirement on. I share some of my top dividend income picks of the moment.
AI adoption will drive long-term value for REITs by boosting efficiency, reducing costs, and expanding profit margins, ultimately raising FFO and fair valuations. Management-intensive REIT sectors—like multifamily, retail, tower infrastructure, and single-family rentals—stand to benefit most from AI-powered operational improvements. Smaller REITs may gain a competitive edge as AI tools help them operate more efficiently, potentially narrowing the gap with larger players.
The REIT market is often slow to react to big changes. This can result in great opportunities for active investors. I present two undervalued REITs that I am buying ahead of the crowd.
Gold and net lease REITs are both tangible, safe-haven assets, but net lease REITs offer income growth and inflation protection for long-term investors. Realty Income and Agree Realty are my top picks, thanks to their scale, disciplined management, and strong balance sheets in a fragmented sector. Net lease REITs benefit from demographic trends and corporate real estate monetization, creating robust demand and consolidation opportunities for leading players.
According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate.
Using Realty Income's annualized dividend of $3.228, you could collect an easy $1,400 a year.
US equity markets retreated from the cusp of record-highs this week as encouraging inflation data showing surprisingly muted tariff-related inflation was spoiled by a sudden escalation in Middle East tensions. The critical CPI and PPI reports both showed cooler-than-expected inflation in May for a third-straight month, as lower oil prices and moderating shelter costs more than offset the tariff uplift. Upsetting the key disinflationary offset that has kept overall inflation suppressed in recent months, the exchange of attacks between Iran and Israel sent global oil prices surging to four-month highs.
Retirement is often misunderstood; rather than a cliff, it should be an off-ramp to more meaningful, flexible work and personal fulfillment. Research shows that abrupt retirement can negatively impact health, purpose, and longevity; maintaining meaningful work and community is crucial. Financial independence should be about gaining the freedom to design a fulfilling life, not simply quitting work altogether.
I focus on the power of compounding—both in life and investing—and recommend a slow, steady approach to building wealth. My top five monthly dividend REIT picks are Realty Income, LTC Properties, Agree Realty, Healthpeak, and Apple Hospitality, all offering value and safety. Each REIT is attractively valued, boasts strong balance sheets, and provides well-covered, above-average yields, supporting a SWAN (sleep well at night) retirement.
Agree Realty Corporation is a net lease real estate investment trust, with a top tier retailer tenant list. ADC consistently outperforms the real estate sector indexes, paying a consistent monthly dividend. Q1 2025 results were strong: double-digit AFFO growth, dividend increase, and raised guidance, reflecting momentum from a robust U.S. economy.
Many REITs pay dividends on a monthly basis. Some of them are offering high dividend yields today. I present 5 of the best monthly paying REITs for passive income.