US7561091049 - REIT
These high-octane monthly dividend payers -- sporting an average yield of 10.9% -- have the necessary catalysts to fatten investors' pocketbooks in the new year.
Dividends, particularly if you reinvest them, can help you build wealth slowly (and easily) over time. This is why investors would be wise to take a closer look at high-yield stocks like Realty Income (NYSE: O) and Vici Properties (NYSE: VICI) right now. Both have characteristics that make them easy wealth builders.
After a tremendous performance in 2021 as the world gradually normalized from the COVID-19 pandemic, the real estate sector has been a major laggard in the years since. In the 2022 bear market where the S&P 500 produced a total return of negative-18%, the real estate sector's performance was eight percentage points worse. It then proceeded to underperform by about 14 percentage points in the 2023 rebound and by another 20 percentage points in 2024.
If you're looking for stocks that can produce heaps of passive income, you want to turn your attention toward a pair of beaten-down real estate investment trusts. W.P. Carey (NYSE: WPC), and Realty Income (NYSE: O) are two highly reliable dividend payers that have been beaten down to near 52-week lows. The Federal Reserve lowered its target interest rate a full point in 2024, but bond traders aren't reading this message as you probably expect them to.
Last year was another challenging one for the commercial real estate sector. Higher rates acted as a headwind for the sector, impacting property values and the ability of real estate investors to borrow money to fund new real estate deals. As a result, the average real estate investment trust (REIT) delivered a meager return last year.
A new year brings with it new opportunities to grow your wealth on Wall Street.
Three supercharged dividend stocks -- sporting an average yield of 8.05% -- have the necessary competitive advantages to make income seekers richer in 2025 (and beyond).
The REIT is still a reliable long-term investment.
This company pays monthly dividends and offers 12% annualized total returns, making it a table-pounding buy.
Realty Income (NYSE: O) pays its dividend every month. Paying this consistently growing dividend is important enough that Realty Income calls itself "The Monthly Dividend Company." Putting aside the company's prioritization of its dividend, Realty Income also has to pay at least 90% of its earnings out as a dividend because it is what's called a real estate investment trust (REIT).
Because of that, retirees and others who live off their passive income often need to be more creative to match their income with their expenses. Further, a few of them offer higher-yielding dividends. Three high-yielding monthly dividend stocks are AGNC Investment (NASDAQ: AGNC), EPR Properties (NYSE: EPR), and Realty Income (NYSE: O).
Investing in real estate can be a fantastic way to generate passive income. Rental properties typically throw off more cash than their monthly expenses, enabling investors to pocket the difference as passive income. There are lots of ways to invest in rental properties.