Monthly Dividend REITs: Four Income Powerhouses Yielding Up to 11.7%

Quarterly dividend payments? Most investors settle for that traditional approach. But what if you could receive distributions every single month instead of waiting three months between payouts? This is where monthly dividend REITs enter the picture. Today, we’re examining four real estate investment trusts that deliver monthly distributions with yields ranging from 5.3% to 11.7%—averaging 7.9% annually. A $500,000 portfolio constructed from this quartet could generate approximately $39,500 in annual dividend income while potentially maintaining your principal investment intact. Rather than quarterly lump sums, you’ll receive consistent monthly paychecks.

Why Monthly REITs Outperform Traditional Dividend Strategies

Let’s be honest: the conventional approach of holding mega-cap stocks and diversified ETFs that pay quarterly dividends creates an uneven cash flow pattern. Compare this to the advantages of monthly dividend REITs:

Portfolio Income Becomes Predictable. Instead of feast-or-famine months where dividends cluster around quarter-end, monthly payers deliver consistent income. This allows for reliable cash flow planning and eliminates the “lumpy” income problem that plagues traditional dividend portfolios.

Reinvestment Accelerates. The faster distributions hit your account, the quicker you can redeploy that capital. Monthly payers enable this strategy more effectively than quarterly alternatives.

Price Stability Matters. The critical requirement for income investors is finding REITs that maintain relatively stable share prices while paying distributions. Without price appreciation, your total return depends almost entirely on yield—which is precisely why we target REITs with predictable revenue streams and established market positions.

Four REITs Delivering Monthly Income: An Investor’s Framework

The REIT universe spans three primary categories: commercial real estate, hospitality properties, and mortgage-backed securities. Each behaves differently based on economic cycles and interest rate environments. Let’s examine four distinct approaches to monthly REIT investing.

Realty Income (O): The Dividend Aristocrat REIT

Current Yield: 5.3%

Realty Income operates as a net-lease REIT, owning and leasing commercial properties to tenants. With a portfolio of 15,500 properties leased to over 1,600 clients across 90+ industries, this $55 billion company has earned the self-proclaimed title “Monthly Dividend Company”—and legitimately so. The company has paid 667 consecutive monthly dividends and achieved 113 consecutive quarterly increases. At over 30 years of uninterrupted dividend growth, Realty Income holds Dividend Aristocrat status—the only monthly-paying REIT to claim this distinction.

The Reality Check: Despite these credentials, shares have underperformed since late 2023. The broader real estate sector has struggled, and Realty Income hasn’t differentiated itself sufficiently to overcome this headwind. The company’s sheer size presents a mixed blessing: its diversified tenant base and 9+ year average lease terms suggest dividend growth will continue, but external expansion opportunities are limited. Additionally, exposure to cyclical sectors like restaurants and fitness centers could pressure cash flows during economic softness. With valuations sitting around 14 times adjusted funds from operations (AFFO), the stock offers neither a compelling bargain nor a compelling growth catalyst.

SL Green Realty (SLG): Manhattan’s Specialized REIT

Current Yield: 6.7%

Unlike diversified REITs, SL Green focuses exclusively on commercial real estate in New York City, positioning itself as “Manhattan’s largest landlord.” Its portfolio comprises interests in 53 buildings spanning nearly 31 million square feet of premium office and mixed-use space.

The Strengths: SL Green benefits from ownership of high-quality, well-located Manhattan real estate in one of the world’s premier business markets. The dividend is currently well-covered, representing only two-thirds of projected 2026 funds from operations (FFO).

The Challenges: This REIT ranks among the most highly leveraged in its category. Critically, 2026 FFO estimates are 19% lower than 2025 projections, raising concerns about dividend sustainability. The company’s distribution history shows volatility—it tends to adjust payouts based on prevailing conditions rather than following a consistent growth trajectory.

The positive: New York office properties have mounted a notable recovery recently, and at 10 times 2026 FFO estimates, shares appear reasonably valued. However, the combination of leverage and declining earnings estimates warrants caution for income investors seeking stability.

Apple Hospitality REIT (APLE): Hotels as Monthly Dividend Vehicles

Current Yield: 7.8%

Apple Hospitality owns and operates 217 upscale hotels across 84 markets in 37 states, generating room inventory of approximately 29,600 guest rooms. The portfolio consists predominantly of Hilton (115 properties) and Marriott (96 properties) branded hotels, with a single Hyatt property.

Operational Advantages: These hotels emphasize essential amenities—gyms, business centers, limited dining—which typically generate superior EBITDA margins compared to full-service competitors. The portfolio skews younger and well-maintained, and geographic diversification across multiple states reduces concentration risk. Valuation stands at an attractive 8 times 2026 FFO estimates, among the lowest in the REIT universe.

Hidden Risks: Margin expansion potential is limited given the “select-service” model already optimizes costs. More significantly, APLE faces exposure to World Cup 2026 demand and immigration policy uncertainty—both factors that could dramatically shift lodging demand.

The dividend picture is complicated. While currently well-covered at less than two-thirds FFO estimates, the distribution has never recovered to pre-COVID levels. The company suspended payments in 2020, restarted at one cent per share in 2021, and has only worked up to 8 cents annually—far below historical 10-cent levels. Special dividends authorized for the previous three years were not continued into 2026, suggesting management believes growth may be slowing.

Ellington Financial (EFC): The High-Yield Mortgage REIT

Current Yield: 11.7%

The highest yielder on this list, Ellington Financial operates as a mortgage REIT (mREIT), a distinct category from physical property owners. Rather than owning buildings, EFC invests in residential and commercial mortgage loans, collateralized mortgage obligations, and other credit instruments.

How Mortgage REITs Work: These entities borrow capital at short-term interest rates to purchase mortgages and mortgage-backed securities yielding long-term rates. Profits derive from the rate spread between short-term funding costs and long-term asset yields. When short-term rates decline relative to long-term rates—or when existing mortgages issued at higher rates appreciate—mREITs benefit significantly.

Recent Performance Drivers: Throughout 2025, the 30-year mortgage rate drifted lower without collapsing—an ideal environment for existing mortgage holdings. The Federal Reserve’s potential for additional rate cuts in 2026 would further benefit EFC. Additionally, anticipated government-sponsored enterprise (GSE) reform, potentially releasing Fannie Mae and Freddie Mac from government conservatorship, could create tailwinds for the mortgage REIT sector.

The Yield Story: Ellington’s mammoth 11.7% yield expanded further following a recent secondary offering (8.77 million shares, with an option for 1.32 million additional shares) designed to redeem Series A Preferred Stock. The company pays $1.56 annually per share, representing approximately 86% of 2026 earnings projections of $1.82 per share—modest cushion but not distressing. Trading at less than 8 times forward earnings, the valuation provides reasonable support.

Assembling Your Monthly REIT Income Strategy

The core principle behind monthly dividend REITs is alignment: receive income at the same frequency you pay bills. A $600,000 portfolio yielding 9% monthly would generate $54,000 in annual income—sufficient for many U.S. retirees when combined with Social Security. Increase the nest egg to $1 million, and monthly distributions reach $90,000 annually, delivered in 12 equal monthly installments rather than sporadic quarterly clumps.

The mathematics prove compelling, but execution requires discipline. Each REIT serves a specific purpose: Realty Income provides stability and aristocrat credentials; SL Green offers concentrated NYC market exposure; Apple Hospitality captures lodging sector dynamics; Ellington Financial delivers maximum yield through mortgage exposure. Combined, these four REITs create a diversified monthly income engine, each contributing distinct risk-return characteristics to your portfolio.

The key advantage remains unchanged: monthly distributions allow dividend reinvestment at consistent intervals, monthly cash flow planning, and elimination of the cash management challenges that plague quarterly-paying portfolios. For investors prioritizing income over growth and seeking monthly paychecks rather than annual dividend statements, monthly dividend REITs deserve serious consideration.