If you’re like most people, you probably wish your paycheck was a bit bigger. That would give you more money to save for a rainy day, invest for retirement, or spend on things you want.
There are many ways to supplement your income, most of which require time or money. If you have some extra cash lying around, you can use it to generate passive income. Here are a few high-yielding dividend stocks that make monthly payments, which can help supplement your paycheck.
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Realty Income
Realty Income (O 0.90%) is one of the most bankable monthly dividend stocks you’ll find. The real estate investment trust (REIT) has paid 659 monthly dividends since its formation. The REIT currently pays $0.2685 per share each month, or $3.222 annualized. The company has a nearly 5.8% dividend yield at its recent stock price. At that rate, every $100 invested in the stock would produce about $0.48 of dividend income each month and $5.80 per year. The more money you invest, the more income you collect.
The great thing about Realty Income is that it routinely raises its dividend payment. The REIT has increased its dividend 130 times since coming public in 1994, and for the past 110 quarters in a row.
The main factor driving Realty Income’s steadily rising dividends is acquisitions. The REIT has a strong financial profile, with a low 75% dividend payout ratio, and its balance sheet looks just as good. It’s one of only 10 REITs in the S&P 500 with two bond ratings of A3/A- or higher. That gives it the financial flexibility to continue investing in properties including net lease retail, industrial, gaming, and others that generate stable rental income to support its growing dividend.
SL Green Realty
SL Green Realty (SLG 1.10%) is the largest office landlord in Manhattan. While demand for office space has declined since the pandemic, it has been slowly recovering. Demand for high-quality office space has been strongest, which is benefiting SL Green Realty because it owns some of the best office buildings in the City. For example, occupancy across its portfolio was 91.8% at the end of March and should improve to 93.2% by year-end as tenants that recently signed leases move into their space this year.
As a result, the office REIT’s rental income is starting to grow. That enabled it to raise its dividend for 2025 to a monthly rate of $0.2575 per share, or $3.09 annualized, up from $3.00 last year, giving it a 5.3% dividend yield at its recent share price.
SL Green only expects to pay out about 57% of its cash flow in dividends this year. That’s enabling it to retain money to invest in new properties. Those new investments position the REIT to grow its rental income, which should support future dividend increases.
Healthpeak Properties
Healthpeak Properties (DOC 0.66%) is a healthcare REIT. It owns a diversified portfolio of outpatient medical buildings, life science properties, and senior housing communities. This portfolio provides it with steadily growing rental income to support its dividend payment.
The REIT just switched to a monthly dividend schedule in April, setting the rate at $0.10167 per share, or $1.22 annualized. That’s a 1.7% increase from its dividend payment last year. Healthpeak currently has a 7% dividend yield at its recent share price.
The healthcare landlord produces more than enough cash to cover its dividend payment. It also has a solid balance sheet, enough so that Healthpeak Properties estimates it has between $500 million and $1 billion of dry powder to make acquisitions or repurchase its shares. Deploying that capital into accretive opportunities should grow its cash flow per share, which should enable the REIT to continue increasing its monthly dividend in the future.
Good ways to supplement your paycheck each month
Realty Income, SL Green Realty, and Healthpeak Properties pay monthly dividends. These REITs are in solid positions to continue increasing their high-yielding dividend payments in the future. Buying their shares should supply you with growing streams of passive income to help supplement your monthly paycheck.
Matt DiLallo has positions in Realty Income and SL Green Realty. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Healthpeak Properties. The Motley Fool has a disclosure policy.