There's no such thing as a binary choice (it's got to be option A or B) when it comes to creating monthly passive income. Investors have dozens of options to choose from, many of which involve publicly-traded securities (and many of which don't).
Quick Read
- Realty Income (O) is highlighted as a top REIT for generating monthly passive income through real estate investments.
- STAG Industrial (STAG) focuses on warehouses and distribution facilities driven by e-commerce demand and yields 3.8%.
- Permian Basin Royalty Trust (PBT) offers monthly dividends as a unique royalty company option.
- Some investors get rich while others struggle because they never learned there are two completely different strategies to building wealth. Don't make the same mistake; learn about both here.
Some investors may choose to look at private investments in rental properties, private equity, and other sources to create meaningful passive income streams for retirement. I'm going to talk about some options tied to this space in this piece, but am going to focus my attention on publicly-traded securities for now.
Why? Well, publicly-traded securities provide much better liquidity, allowing investors to enter and exit positions as they need capital. I think that those investing for retirement may want or require this liquidity, so that's the basis for this overarching perspective.
Without further ado, let's dive in!
Realty Income (O)
I did mention I would touch on real estate as an overarching thesis for creating monthly income. Indeed, when many investors think of monthly passive income-generating assets, real estate is the first sector that comes to mind, after all.
In this space, Realty Income (NYSE:O) is among the top real estate investment trusts (REITs) out there for investors to choose from. The fund's status as a leading monthly income stock is well-documented, and this is often the go-to option for those seeking to benefit from rising rental income (and stable balance sheets) among blue-chip commercial properties in the U.S. market.
With more than 15,000 properties in its portfolio, most of which are anchored by quality tenants under long-term agreements, Realty Income remains a go-to option for those in the passive income investing world. The company's recent results this past quarter, in which EPS surged from $1.26 the same quarter a year prior to $1.41 (and revenue shot to nearly $5 billion for the quarter), suggest that the company's 5.7% dividend yield is not only sustainable but could have room to rise over time.