This net-lease retail REIT offers a 4.77% forward yield paid every month, which ranks in the top 40% of all dividend stocks. The company owns stores leased to grocery, home improvement, convenience, discount apparel, and auto parts chains. Tenants cover property taxes, insurance, and maintenance, which turns rent into a clean stream of cash that funds the monthly payout.
The business is growing faster than many peers despite high interest rates. Occupancy reached a record 99.8% last quarter, and the company invested a record amount of capital into new properties. Management raised its full-year outlook after a record first half. About two-thirds of rent comes from tenants with strong credit ratings, which lowers the odds of missed payments. Losses from unpaid rent and vacancies have been close to zero this year.
The main risk ties back to borrowing costs. A 10-year Treasury yield near 4.7% could narrow the gap between what new properties earn and what the company pays for capital. The company also relies on selling shares for future delivery to fund deals, which adds some timing risk.
We reaffirmed this position in the Best Monthly Dividend Stocks Portfolio because its yield rests on durable tenants and near-perfect rent collection. The shares trade 18% below their 52-week high, which gives income investors a chance to collect a solid monthly yield from a defensive landlord at a lower price.
