Retirees Seeking Safe Monthly Passive Income Should Buy These 5 High-Yield Favorites

Most dividend investors seek solid passive income streams from quality dividend stocks. Passive income is a steady stream of unearned income that does not require active traditional work. Shared ideas for earning passive income include investments like dividend stocks, bonds, mutual funds, real estate, and additional income-producing side hustles. The more passive income can help cover costly and rising costs, the easier for investors to put away money for future needs as they prepare to enjoy retirement. Dependable recurring monthly dividends from quality, high-yield stocks are a recipe for success.

A monthly check makes sense for many who have bills and expenses due every 30 days in a world where prices are consistently rising. Items like mortgage payments or rent, utility bills, trash collection, and even grocery bills are always due each month, and a steady stream of passive monthly income can be a huge help in meeting those obligations.

We screened our 24/7 Wall Street research database for companies rated Buy at major Wall Street firms that paid monthly dividends. Five seem like great ideas for passive income-oriented investors seeking upside appreciation.

Why do we cover monthly dividend stocks?

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. With inflation sticky, baby boomer retirees need to generate growth and revenue.

Agree Realty

This mid-cap stock offers a reliable 4.25% dividend and strong upside potential. Agree Realty Corp. (NYSE: ADC)  is a publicly traded real estate investment trust that acquires and develops properties net leased to industry-leading, omnichannel retail tenants. As of June 30, 2024, the Company owned and operated a portfolio of 2,202 properties in 49 states containing approximately 45.8 million square feet of gross leasable area.

In 1971, Richard Agree, the executive chair of the board of directors, founded Agree Development Company, the predecessor to Agree Realty. Over its 23-year history, Agree developed over 40 community shopping centers, primarily throughout the Midwestern and Southeastern United States.

Apple Hospitality REIT

Apple Hospitality REIT Inc. (NYSE: APLE) is a publicly traded real estate investment trust that pays a solid 6.30% dividend and stands out in the market with its unique offering.

Despite its name, it is not affiliated with the technology giant. However, it offers a solid total return potential, owning one of the largest and most diverse portfolios of upscale, room-focused hotels in the United States.

Apple Hospitality’s portfolio comprises 220 hotels with over 28,900 guest rooms in 87 markets throughout 37 states and one property leased to third parties.

Concentrated on industry-leading brands, the company’s hotel portfolio comprises:

• 100 Marriott-branded hotels
• 120 Hilton-branded hotels
• Five Hyatt-branded hotels

EPR Properties

This REIT invests in some of the most popular entertainment companies and pays a solid 7.36% dividend. EPR Properties (NYSE: EPR) is a leading experiential net lease REIT specializing in select enduring experiential properties in the real estate industry.

The company focuses on real estate venues that create value by facilitating out-of-home leisure and recreation experiences where consumers spend their time and money.

EPR Properties has nearly $6.7 billion in total investments across 44 states. It adheres to rigorous underwriting and investing criteria centered on key industry, property, and tenant-level cash flow standards. Senior management believes its focused approach provides a competitive advantage and the potential for stable and attractive returns.

Main Street Capital

This company is a favorite across Wall Street and offers a solid 6.80% dividend. Main Street Capital Corp. (NASDAQ: MAIN) is a private equity firm that provides equity capital to lower-middle market companies.

The firm also provides debt capital to middle-market companies for:

• Acquisitions
• Management buyouts
• Growth financings
• Recapitalizations
• Refinancing

The firm seeks to partner with entrepreneurs, business owners, and management teams and generally provides “one-stop” financing alternatives within its lower middle market portfolio.

Main Street Capital typically invests in lower middle market companies with annual revenues between $10 million and $150 million.

The firm’s middle-market debt investments are in businesses generally more significant in size than its lower middle-market portfolio companies. It also makes majority and minority equity investments.

Realty Income

This is an ideal stock for growth and income investors looking for a safer contrarian idea for the rest of 2024. It pays a whopping 5.81% dividend. Realty Income Corp. (NYSE: O) acquires and manages freestanding commercial properties that generate rental revenue under long-term net lease agreements with commercial clients.

It is engaged in a single business activity: leasing property to clients, generally on a net basis. That business activity spans various geographic boundaries and includes property types and clients engaged in multiple industries.

The company owns approximately 15,450 properties across 86 different industries leased to over 1,300 other clients in all 50 states, Puerto Rico, the United Kingdom, Spain, Italy, Ireland, France, Germany, and Portugal. Its property types include retail, industrial, gaming, and others, such as agriculture and office.

Its primary industry concentrations include:

• Grocery stores
• Convenience stores
• Dollar stores
• Drug stores
• Home improvement
• Restaurants
• Quick service

Want Almost $14,000 per Year in Dependable Passive Income? Invest $25,000 in These 4 Stocks

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