The Best High-Yield Dividend Stocks for Passive Income in June
Healthpeak Properties, Realty Income, and Stag Industrial are among the top stocks that offer high-yielding monthly dividends. These companies have a proven track record of consistently paying out dividends to their shareholders, making them great options for investors seeking to collect passive income every month.
The Diversified REIT with a Strong Financial Profile
Realty Income, also known as "The Monthly Dividend Company," is one of the leaders in paying monthly dividends. The company has increased its dividend payout 130 times since its public market listing in 1994 and has maintained this record for the past 110 consecutive quarters. Its ability to raise its payment consistently makes it an attractive option for investors. With a low payout ratio (75% of its adjusted Funds from Operations (FFO)) and a strong financial profile, Realty Income will have plenty of flexibility to continue growing its portfolio and payouts.
Realty Income’s success in allocating capital is driving its growth and has led to 130 consecutive dividend increases since 1994. Acquisitions are the key driver of this growth as Management invests billions of dollars each year in expanding its portfolio. This strategy enables Realty Income to retain over 75% of its FFO, allowing it to maintain a strong financial profile and continue growing its payouts.
Healthpeak Properties: A New Member of the Monthly Dividend Club
Healthpeak Properties recently switched to a monthly dividend schedule in April. The company’s portfolio features outpatient medical buildings, labs, and senior housing communities, providing stable and growing rental income. As a Real Estate Investment Trust (REIT), Healthpeak is required to distribute at least 90% of its taxable income to shareholders via dividends each year. However, this translates to less than 70% of its funds from operations (FFO), indicating potential for future growth.
With a current yield exceeding 7%, Healthpeak Properties offers investors attractive returns. At $0.10167 per share every month, the company provides more than $1.22 per year in dividend income to each shareholder. This represents a 2% increase over its previous rate in 2024. The REIT has an estimated $500 million to $1 billion in financial flexibility to make new accretive investments or repurchase shares, supporting future growth.
Stag Industrial: A Steadily Rising Income Stream
Stag Industrial owns a diversified portfolio of income-producing industrial properties, which generate cash flow to distribute as dividends. The REIT pays about two-thirds of its FFO in dividends, retaining over $100 million each year for investing in new properties. With a steady stream of new additions, Stag Industrial aims to increase its dividend payouts consistently.
The company’s ability to invest in stabilized operating and value-add industrial properties supports growth in both its portfolio and payouts. By buying vacant buildings with redevelopment or expansion potential, Stag Industrial is poised to benefit from future demand for industrial real estate. As it continues acquiring new assets, the REIT should maintain a strong position within the dividend market.
Conclusion
Healthpeak Properties, Realty Income, and Stag Industrial offer attractive monthly dividend options for investors seeking passive income. These companies have demonstrated their ability to consistently pay out high yields on a monthly basis, making them popular among income-focused investing strategies.
With significant growth potential in both Realty Income’s expansion and Healthpeak’s financial flexibility, each stock presents an attractive investment opportunity. While Stag Industrial’s steady stream of dividend payments and consistent acquisitions make it a reliable option for investors looking for stable returns.
Investors focused on generating passive income should consider adding these top-notch monthly dividend stocks to their portfolios to benefit from long-term growth in both payouts and overall value.
